Corporate Governance Mechanisms and Value Creation: An Empirical Evidence

Main Article Content

Musa Usman Kabir
Norhani Binti Aripin
Redhwan Ahmed Ali Al-Dhamari

Abstract

The study examines the perceived effects of corporate governance mechanisms on the value of manufacturing firms in Nigeria by adopting economic value added as the measure of firm value. Corporate governance mechanisms such as concentrated ownership, managerial ownership, the board size, board independence, and foreign ownership as they influence corporate valuation were empirically investigated. 89 listed manufacturing firms in Nigeria were selected for 5 years (2012-2016) for the analysis. The study utilized different tests such as OLS panel data regression and multiple regression model to establish the relationship with panel corrected standard error (PCSE). The study is guided by resource enrichment theory and agency theory. The finding of the study shows that ownership concentration, the board size, and board independence positively impacted on firm value as measured by economic value added. However, managerial ownership and foreign ownership reported negative and insignificant impacts on the value of Nigerian manufacturing firms.

Keywords:
Corporate governance mechanisms, economic value added, firm value

Article Details

How to Cite
Kabir, M., Aripin, N., & Ali Al-Dhamari, R. (2019). Corporate Governance Mechanisms and Value Creation: An Empirical Evidence. Asian Journal of Economics, Business and Accounting, 11(4), 1-14. https://doi.org/10.9734/ajeba/2019/v11i430134
Section
Original Research Article

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