Effect of Directors Tunneling on Maintenance Cost of Information and Communication Technology Service Industries in Nigeria
Year: 2026
Type: article
Abstract: This study investigated the effect of directors tunneling on maintenance cost of information and communication technology service industries in Nigeria. The specific objectives were to examine the effect of boards of directors pay, Chairman’s pay, directors equity holding outside directors pay and CEO allowance on maintenance cost of information and communication technology service in Nigeria. Ex-post facto research design was adopted in this study; The population of the study consists of nine information and communication technology firms, the researcher choose the entire nine firms to represent the sample size. The study also employed descriptive statistics, correlation test, variance inflation test, Panel Least Squared (PLS) method of data analysis was used. From the analysis result the study found that, Outside directors pay had insignificant and negative effect on maintenance cost of information and communication technology service in Nigeria (t=,-1.323954 p=0.1900). CEO allowance have insignificant effect on maintenance cost of information and communication technology service in Nigeria (t=, 0.782760, p=0.4365). Boards of directors pay have significant and negative effect on maintenance cost of information and communication technology service in Nigeria. (t=,-3.151425, p=0.0024). Chairman’s pay had significant postive effect on maintenance cost of information and communication technology service in Nigeria (t=, 2.913647=0.0049). Chairman’s pay had insignificant negative effect on maintenance cost of information and communication technology service in Nigeria (t=,-1.267569=0.2093). The study concludes that directors tunneling have negative effect on maintenance cost of information and communication technology service in Nigeria. It was recommended that Outside directors pay should not be fixed by the executive directors rather it should be fixed by the entire shareholder during the annual general meeting to reduce the influence of the directors and the give and take politics of the board. Joint committee comprising of members of the board of director and selected shareholder be set up to review the proposed CEO allowance before the final approval by the entire members during the annual general meeting. Adequate management and controlling of board of director’s pay should be pursued by the shareholders of the ICT companies in Nigeria.
Authors: Abazu, M. Ebere, Prof., Ifureze, M.S
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7155995899
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