Institutional Shareholder Engagement, Corporate Governance and Firms’ Financial Performance in Nigeria: Does any relationship exist?

Ojeka, Stephen and Fakile , A. S. and Ikpefan, Ochei Ailemen and Achugamonu, Bede U. (2016) Institutional Shareholder Engagement, Corporate Governance and Firms’ Financial Performance in Nigeria: Does any relationship exist? Journal of Internet Banking and Commerce, 21 (2). ISSN 1204-5357

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Abstract

Academics and business practitioners have extensively debated the dramatic increase in institutional ownership and the sudden interest of institutional shareholders in corporate governance. This paper examined the relationship that exists between institutional shareholder engagement and financial performance of selected listed firms in Nigeria. This study used primary data to describe the independent variables: namely institutional ownership, exercise of voting rights and private negotiation. It also used panel data for twenty (20) selected listed firms for the period 2011-2013. Firm’s performance was measured using Return on Asset (ROA), Return on Equity (ROE) and Tobin’s Q. Findings indicate that there is no significant relationship between institutional shareholder engagement and firms’ financial performance in Nigeria. However, the results were mixed when the performance indicators in term of ROA, ROE and Tobin’s Q. This research study suggests that institutional shareholders in Nigeria should become efficient monitors of corporate management just like what obtains in developed countries. This will ensure effective and good corporate governance practices and avoid insider abuse for the enhancement of financial performance

Item Type:	Article
Uncontrolled Keywords:	Institutional Shareholders; Corporate Governance; Financial Performance; Nigeria
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mrs Patricia Nwokealisi
Date Deposited:	19 Jun 2017 10:01
Last Modified:	23 Jun 2017 09:46
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/8358

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