Corporate governance is often split between rulebased and principle-based approaches to regulation in different institutional contexts. This split is often informed by the types of institutional configurations, their strengths, and the complementarities within them. This approach to corporate governance regulation is mostly discussed in the context of developed economies and their regulatory demands. However, in developing and weak market economies, such as in Sub-Saharan Africa, there is no such explicit split and the debates on such contexts in the comparative corporate governance literature have been meagre. Nonetheless, there are sparks of good corporate governance practices in the region. Drawing from institutional theory and a case study of a largest economy, we explore the appropriateness or suitability of corporate governance regulatory frameworks in Sub-Saharan Africa. Our findings suggest that Nigeria needs an integrated system that combines elements of both rule-based and principle-based regulation, supported by a multi-stakeholder coregulation strategy. This paper departs from the mainstream rule-based and principle-based categorisations by forging ahead new perspectives on corporate governance regulation, especially in weak market economies.
Corporate governance is often split between rulebased and principle-based approaches to regulation in different institutional contexts. This split is often informed by the types of institutional configurations, their strengths, and the complementarities within them. This approach to corporate governance regulation is mostly discussed in the context of developed economies and their regulatory demands. However, in developing and weak market economies, such as in Sub-Saharan Africa, there is no such explicit split and the debates on such contexts in the comparative corporate governance literature have been meagre. Nonetheless, there are sparks of good corporate governance practices in the region. Drawing from institutional theory and a case study of a largest economy, we explore the appropriateness or suitability of corporate governance regulatory frameworks in Sub-Saharan Africa. Our findings suggest that Nigeria needs an integrated system that combines elements of both rule-based and principle-based regulation, supported by a multi-stakeholder coregulation strategy. This paper departs from the mainstream rule-based and principle-based categorisations by forging ahead new perspectives on corporate governance regulation, especially in weak market economies. Keywords Corporate governance Á Sub-Saharan Africa (Nigeria) Á Principles-based Á Rule-based Á Co-regulation Á Institutional theory Á Culture This article majorly constitutes a part in Nakpodia, F. (2016).
This paper provides empirical evidence for the relative importance of industry and firm-level factors as determinants of firm performance. It also shows the relevance of the individual factors at both industry and firm levels. The paper therefore attempts to provide evidence for effects of industry and business-specific factors on firm performance using data from a developing economy. The study uses the financial and other organization-specific data of firms listed on the Nigerian Stock Exchange. The findings show that organization-specific factors are relatively more important than the industry factors, accounting for 66.58 percent of the variation in return on asset with little or no evidence for the effects of industry-level factors on return on asset. Financial leverage, firm size and firm growth rate are shown to be the most relevant firm-level factors. Firm-level factors also accounts for slightly more variance in Tobin’s Q than the industry factors.The results also show that the industry sector of the firm is the most relevant industry-level determinant of firm market performance. There is however little or no evidence for the effects of both industry- and firm-level factors on return on equity.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.