| Summary: | Purpose: Enforcement is reported as key to effective corporate governance.But in an emerging
nation like Nigeria, where structures and enforcement mechanisms have been reported weak,
there is the need to examine factors responsible. This paper takes steps towards developing a stakeholder perspective to examine any relationship between enforcement structures and board performance for effective corporate functioning.Methodology: Based on survey perceptions of 154 respondents from the Nigerian regulatory enforcement agencies and sampled public firms, the study employs confirmatory factor
analysis (CFA) in a structural equation modeling (SEM) approach; a model that relates three enforcement structure variables to board performance is proposed.Findings: Building upon enforcement structure construct based on stakeholder framework, the study found the dimensions of regulatory capacity, monitoring compliance, and enforcement mechanisms as the valid measures.The study concludes that enforcement has significant effect on board performance.However, regulatory capacity indicators correlate as valid measures.Hence, confirmed through CFA and the structural model (SEM).Originality: The paper explores new research idea on board and focus on strengthening
regulatory framework by Nigerian enforcement agencies.This adds to knowledge, enhances
regulatory capacity and reduce conflicts of interests.The SEM approach exposes firms to an
appropriate and efficient legal, regulatory and institutional foundation upon which all market
participants can rely in establishing their contractual relations for effective functioning.
|
|---|