University Links: Home Page | Site Map
Covenant University Repository

Corruption perception, institutional quality and performance of listed companies in Nigeria

Ojeka, Stephen and Adegboye, Alex and Adegboye, Kofo and Umukoro, Olaoluwa and Dahunsi, Olajide and Ozordi, Emmanuel (2019) Corruption perception, institutional quality and performance of listed companies in Nigeria. Heliyon.

[img] PDF
Download (329kB)
[img] PDF
Download (329kB)


We examine the effect of corruption perception and institutional quality on the performance of firms based on the extracted data for 135 listed companies in Nigeria with timeframe 2013–2017. We first use the Transparency International Corruption Perception Index for the baseline analysis, which evaluates the public officials and politicians’ corruption practices. To capture institutional quality, which depicts the level of law enforcement to curb corruptive practices of the public officials, we use the first component via Principle Component Analysis of six governance indicators extracted from World Bank Governance Indicators. We then use the Generalized Method of Moment (GMM) for the analysis. We find that corruption is negatively related to the market value (TobinQ) and accounting value performance (ROA). Similarly, institutional quality is negatively related to TobinQ and ROA. The results suggest that corruption and institutional quality weaken the market and accounting performance firms in Nigeria. We further compare the extent of corruption and institutional quality on performance between financial and non-financial institution. We find that both corruption and weak institutional environment tend to impair the market and accounting-based performance of non-financial firms, which could be traced to the less regulatory body in such institution compared to the financial institution. We suggest that Nigeria needs more effective and strong mechanisms proactive to curb corruption practices and weak institutional quality.

Item Type: Article
Uncontrolled Keywords: Economics Bribery Corruption perception Institutional environment Firm performance Nigeria
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 02 Jun 2021 11:18
Last Modified: 02 Jun 2021 11:18

Actions (login required)

View Item View Item