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Corporate Governance and Shareholder Value Maximization: An African Perspective
Author(s) -
KyereboahColeman Anthony
Publication year - 2007
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/j.1467-8268.2007.00165.x
Subject(s) - corporate governance , shareholder value , shareholder , maximization , panel data , business , value (mathematics) , perspective (graphical) , economics , accounting , econometrics , finance , microeconomics , statistics , mathematics , artificial intelligence , computer science
: This study looks at corporate governance and its impact on shareholder value maximization in Africa. Data from South Africa, Ghana, Kenya and Nigeria covering the period 1997–2001 were used and analysis done within the panel data framework. Results show that, though highly dispersed, both within and between firms, corporate boards in the selected countries are relatively not independent. The regression result shows that large board sizes enhance corporate performance and shareholder value maximization. Our study also shows that both sector and country‐specific effects have an impact on shareholder value maximization. While the mining sector is dominant in maximizing shareholder value, it also suffers from higher taxes and interest payments.