Year: 2025
Type: article
Abstract: We explore how voluntary internal corporate governance (CG) disclosures in Nigeria and South Africa influence the firm value of listed firms, which is proxied by market capitalisation-to-book value, focusing on five internal board disclosures: board size, board meetings, board gender diversity, board audit committee meetings, and board independence. These governance mechanisms are based on Anglo-Saxon regulation, and the unbalanced panel data comprises 1,040 firm-year observations from 104 firms in both countries. The study used the generalised method of moments (GMM) estimation technique, whilst the dynamic ordinary least squares (DOLS) were deployed as a robustness check for additional validity. The results show that board size is positively and significantly associated with firm value. In contrast, audit committee meeting frequency has a significant negative relationship with firm value. Our results show that regulatory bodies and stakeholders must move beyond adherence to CG codes and be guided by the principles, with a bias for competencies and qualities of persons appointed to the board, and uphold clear objectives and effectiveness for board meetings and oversight responsibilities of directors.
Source: Corporate Ownership and Control
Authors: Eze Agha, Festus Olatunbode Ashogbon
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4410896115