May 18, 2023
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ISSN – PRINT:2756-4495 | ONLINE: 2756-4487

Volume 02, Issue 03 – 2022

Corporate Governance Attributes And Performance Of The Nigerian Capital Market

Emeka Obi
Egwuibe, Achi Eric


This paper empirically examined the influence of corporate governance attributes on the performance of the Nigerian Capital market for the period 1988 to 2018. Corporate governance was proxied by board independence, board size, gender diversity and audit committee independence while total market capitalization and All Share Index were proxies for the performance of the Nigerian Capital market. There were therefore two models for the study. Secondary data were sourced from various issues of the Nigerian Stock Exchange Fact Book. Given that the data are time series in nature, stationarity tests were conducted using the Phillips-Peron Unit Root test. All the variables were stationary at first difference. To establish that there is a relationship between the explained variable and explanatory variables in the long run, the Johansen’s Co-Integration technique was adopted. Furthermore, Error Correction Model (ECM) and Granger Causality Tests (GCT) were conducted. ECM was conducted as it adjusts variables with long term trends with stochastic characteristics to their original form. On the other hand, GCT helps to determine if a series that is one time is a determinant that affects another time series. The results showed that negative and insignificant relationships existed between board independence and total market capitalization and between audit committee independence and All Share Index. Also, there was a bi-directional causality between Board size and All Share Index. The study therefore recommends that Board independence and Audit committee independence should be strategically strengthened by the listed companies and regulators of the Nigerian Capital Market to ensure the market’s robust performance.

Key Words: Corporate Governance; Capital Market; Market Capitalization; CoIntegration; Error-Correction Mode

l ORCID ID: 0000-0003-1591-1141



Volume 01, Issue 02

Volume 01, Issue 01