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Does the Reformed Code of Corporate Governance 2011 Enhance Market Performance of Firms in Nigeria?

Ojeka, Stephen and Iyoha, F. O. and Ikpefan, Ochei Ailemen and OSAKWE, Chioma (2017) Does the Reformed Code of Corporate Governance 2011 Enhance Market Performance of Firms in Nigeria? International Journal of Economic Perspectives, 11 (1). pp. 155-164.

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Abstract

Recent corporate failures in the Nigerian Financial Sector and the resultant effect on the market performance of listed firms necessitated the review of the existing codes of corporate governance in Nigeria. The research study therefore explored the relationship between corporate governance mechanisms and market performance using four corporate governance mechanisms variables as reviewed in the SEC Code 2011 and four market performance variables. The four independent variables are audit committee independence, audit committee financial expertise, board independence and ownership structure while the market performance indicators are Share Price (SP), Volume of Trade (VOT), Market Capitalization (MC) and Earnings per Share (EPS). Empirical analysis was carried using correlation, regression and two independent T-tests. The result showed that there is a positive significant impact of audit committee independence, audit committee financial expertise, board independence as revised in the SEC Code 2011 on SP, VOT, MC and EPS. This study recommends that there is need for Policy makers to strengthen the implementation of every recommendation contains in the SEC Code 2011 to further stabilize the performance of listed firms and also repose the confidence of investors both local and foreign investors in the capital market. It is recommended that the provisions as contained in the SEC Code 2011 be backed up by law to ensure strict compliance.

Item Type: Article
Uncontrolled Keywords: Corporate Governance; Share Price; Trade; Market Capitalization; SEC Code 2011; Nigeria
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 27 Jun 2017 08:58
Last Modified: 27 Jun 2017 08:58
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/8505

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