Mitigating the Collision of Political Dynamic and Regulation Implementation in Nigerian Public Sector

David Nkata Bassey; Hamid H Kazeroony

AFAM Biennial Conference, 5TH BIENNIAL CONFERENCE - Nigeria 2020

David Nkata Bassey, Hamid H Kazeroony

Last modified: 2019-08-13

Abstract

In Nigeria, there has been a significant drop in foreign direct investment because of political dynamics in the implementation of corporate governance in the public sector. This study, guided by institutional theory, examined how to mitigate political dynamics collision in the Nigerian public sector when implementing corporate governance regulations by comparing documents from the Nigeria Securities and Exchange Commission (SEC) with the U.S. SEC. A case study was used to examine the documents’ relevance to Nigerian political dynamics affecting corporate governance. Based on the results, the recommendation is that political and ethnic consideration should be reduced for the interest of the economy, the high points from other countries should be replicated through a hybrid structure, and executive recklessness should be curtailed by encouraging independent operations and strengthening of institutions. The findings of this study may be beneficial to Nigerian investors, researchers, and regulators because it may enhance the application of corporate governance in the public sector, improve compliance with global practices, ensure the credibility of the state and business integrity, and bring about positive social change.

References

Abdulmalik, S. O., & Ahmad, A. C. (2016). Corporate governance and financial regulatory framework in Nigeria: Issues and challenges. Journal of Advanced Research in Business and Management Studies, 1(2), 50-63. Retrieved from http://www.akademiabaru.com/ARBMSV2_N1_P50_63.html

Abreu, M. C., Cunha, L. T., & Barlow, C. Y. (2015). Institutional dynamics and organizations affecting the adoption of sustainable development in the United Kingdom and Brazil. Business Ethics: A European Review, 24, 73-90. doi:10.1111/beer.12074

Adegbite, E. (2015). Good corporate governance in Nigeria: Antecedents, propositions and peculiarities. International Business Review, 24,319-330. doi:10.1016/j.busrev.2014.08.004

Adamolekun, L., Erero, J., & Oshionebo, B. (1991). Federal civil service and the military. The Journal of Federalism 21(4), 75-88. doi.10.10931oxfordjournals.pubjof.a037980

Adeyanju, O. D. (2012). An assessment of the impact of corporate social responsibility on Nigerian society: The example of banking and communications industries. Universal Journal of Marketing and Business Research, 1,17-43. Retrieved from http://www.universalresearchjournals.org/ujmbr

Afolabi, A., & Dare, A. M. (2015). Corporate governance in the Nigerian banking sector: Issues and challenges. European Journal of Accounting Auditing and Financial Research, 3(5), 64-89. doi:10.4314/afrrev.v9i2.8

Ahunwan, B. (2002). Corporate governance in Nigeria. Journal of Business Ethics, 37(3), 269-287. Retrieved from https://www.jstor.org/stable/25074754

Ahmed, A. B., & Bello, M. (2015). Regulatory failures and the collapse of the capital market in Nigeria: aligning responsibilities with accountability. Journal of Law Policy and Globalisation, 40, 167-184. Retrieved from www.iiste.org

Aina, K. (2013). Board of directors and corporate governance in Nigeria. International Journal of Business and Finance Management Research,1, 21-34. Retrieved from www.bluepenjournals.org/ijbfmr

Akinyomi, O. J., & Olutoye, E. A. (2015). Corporate governance and profitability of Nigerian banks. Asian Journal of Finance & Accounting, 7(1), 172-182. doi:10.5296/ajfa.v7il.6543

Andreasson, S. (2011). Understanding corporate governance reform in South Africa: Anglo-American divergence, the King reports, and hybridization. Business & Society, 50(4), 647-673. doi:10.1177/0007650309332205

Armstrong, A., Jia, X., & Totikidis, V. (2014). Parallels in private and public sector governance. Retrieved from: http://vuir.vu.edu.au/id/eprint/948

Ayandele, I. A., & Isichei, E. E. (2013). Corporate governance practices and challenges in Africa.European Journal of Business and Management, 5(4), 51-59. Retrieved from wws.iiste.org

Bebchuk, L. A., & Hamdani, A. (2009). The elusive quest for global governance standards. University of Pennsylvania Law Review, 157(5), 1263-1317. Retrieved from http://www.law.upenn.edu/live/files/87-bebchukhadani157upalrev 12632pdf

Bello, L. (2016). Re: Duplication of corporate governance codes and the dilemma of firms with dual regulatory jurisdictions. Corporate Governance, 16, 476-489. doi:10.1108/CG-08-2015-0115

Berk, J., & DeMarzo, P. (2014). Corporate Finance(3rd ed.). Boston, MA: Prentice Hall.

Blenko, M., Mankins, M. C., & Rogers, P. (2010). Decide and deliver: Five steps to breakthrough performance in your organization. Boston, MA: Harvard Business Review Press.

Boubakri, N., Cosset, J., & Saffer, W. (2012). The impact of political connections on firms operating performance and financial decisions. Journal of Financial Research, 35(3), 397-423.

Bowen, G. A. (2009). Documentary analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27-40. doi:10.3316/QRJ0902027

Campos, E., & Lateef, S. (2004). Improving public sector governance: The grand challenge? Retrieved from http://www1.worldbank.org/prem/lessons1990s/chap%chap%209%20governance/2009214%20rw.pdf

Chavunduka, M. D., & Sikwila, N. M. (2015). Corporate governance in Zimbabwe: The zimcode and state owned enterprises connection. International Journal of economics, Commerce and Management, 3(11), 651-661. Retrieved from http://ijecm.co.uk/

Chimbari, P. (2017). Public sector corporate governance in Zimbabwe: The nexus between the zimcode and state-owned enterprises. International Journal of Economics, Commerce, and Management, 5(7), 212-221. Retrieved from http://ijecm.co.uk/

Chukkol, O. G. (2017, August 26). Is there conflict between the constitution and the EFCC Act on presidential powers to appoint the EFCC chairman? BarristerNG. Retrieved from http:/www.barristerng.com

Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging Market Review, 15, 1-33. doi:10.1016/j.ememar.2012.03.002

Clayton, J. (2018, December 12). Testimony on oversight of the U. S. Securities and Exchange Commission. Harvard Law school Forum. Retrieved from https://corpgov.law.harvard.edu

Congressional Research Service (2018, December 19). Congress’s authority to influence and control executive branch agencies. Congressional Research Service. Retrieved from https//crsreports.congress.gov

Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2010). Disclosure by politicians. American Economic Journal: Applied Economics, 2(2),179-209.

Dumev, A., & Fauver, L. (2007). Stealing from thieves: Firm governance and performance when state are predatory. Retrieved from http://hdl.handle.net/10086/29287

Economic Commission for Africa. (2003). Public sector management reforms in Africa. Retrieved from http://www.uneca.org, 1-63

Fritz, V., & Levy, B. (2014). Problem driven political economy in action: Overview and synthesis of the case studies. In V. Fritz, B. Levy, and R. Ort, (Eds.), Problem-driven political economy analysis: The World Bank experience(pp. 1-30). Washington DC: The World Bank.

Gallagher, D. M. (2015, June 23). Activism, short-termism, and the SEC: Remarks at the 21^stannual Stanford Directors’ College.U.S. Securities and Exchange Commission. Retrieved from https://www.sec.gov

Gourevitch, P. A. (2003). The politics of corporate governance regulation. Yale Law Journal, 112(7/4). Retrieved from http://digitalcommons.lwa.yale.edu

Jemide, A. (2018, September 25). Who regulates the regulators? BusinessDay,36.

Jordan, I. (2014). Corporate governance in the public sector. Observatoire de la societe britannique, 16, 37-50. doi:10.4000/osb.1706

Kachikwu, I. (2018, October 9). Corporate governance challenges in Nigeria: The way forward. The Guardian. Retrieved from http://guardian.ng

Keping, Y. (2018). Governance and good governance: A new framework for political analysis. Fudan Journal of the Humanities and Social Sciences,11(1), 1-81. doi:10.1007/s40647-017-0197-4

Khan, T. H., Khan, H. A., & Wariach, M. A. (2014). Governance challenges in public sector: An analysis of governance and efficiency issues in public sector institutions in Pakistan. Developing Country Studies, 4(9), 58-67. Retrieved from http//www.iiste.org

Lawal, B. (2016, May 24). Political appointments is the prerogative of the president. Nigerian Observer. Retrieved from https://nigerianobservernews.com

Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. Newbury Park, CA: Sage.

Matei, A., & Drumasu, C. (2015). Corporate governance and public sector entities. Procedia Economics and Finance, 26,495-504. doi:10.1016/S2212-5671(15)00879-5

Merriam, S. B. (1998). Case study research in education: A qualitative approach.San Francisco, CA: Jossey-Bass.

McNulty, T., Zattoni, A., & Douglas, T. (2013). Developing corporate governance research through qualitative methods: A review of previous studies. Corporate Governance: An International Review, 21(2), 183-198. doi:10.1111/corg.12006

Mulyadi, M. S., Anwar, Y., & Ikbal, M. (2012). The importance of corporate governance in public sector.Global Business and Economics Research Journal, 1(1), 25-31. Retrieved from http://www.globejournal.org

Nagarajan, V. (2014). Banks as regulators of corporate governance: The possibilities and challenges. Law in Context: A Social Legal Journal, 30(1), 171-196. Retrieved from http://heinonline.org

Neselevska, O. (2013). Do political connections influence corporate governance quality in developing economies? (a study of the Ukrainian market)(unpublished master thesis). Hanken School of Economics, Helsinki.

Nwosu, P. I., & Oseni, I. O. (2011). Efficient market hypothesis and Nigerian stock market. Research Journal of Finance & Accounting, 2(12), 38-46. Retrieved from http://www.iiste.org

Obeten, O. I., Ocheni, S., & John, S. (2014). The effects of corporate governance on the performance of commercial banks in Nigeria. International Journal of Public Administration and Management Research, 2(2), 219-234. Retrieved from http://www.rcmss.com

Obong’o, S. O. (2013). Particularistic exchange and pacts of domination in Africa: Examining how patronage appointments may have increased resistance to public sector reforms in Kenya. International Public Management Review, 14(1), 27-46. Retrieved from www.ipmr.net

Omankhanlen, A. E., & Taiwo, J. N. (2013). The role of corporate governance in the growth of Nigerian banks. Journal of Business Law and Ethics, 1(1),44-56

Osemeke, L., & Adegbite, E. (2016). Regulatory multiplicity and conflict: Towards a combined code on corporate governance in Nigeria. Journal of Business Ethics, 133(3), 431-451. doi:10.1007/s10551-014-2405-3

Paredes, T. A. (2010). Corporate governance and the new financial regulation: Complements or substitutes? [Speech]. Retrieved from https://www.sec.gov/news/speech/2010/soch102510tap.htm

Roe, M. J. (2003). Political determinants of corporate governance. Oxford, England: Oxford University.

Security Exchange Commission. (2013, June 10) What we do. Retrieved from https://www.sec.gov/Article/whatwedo.html

Security Exchange Commission. (2015). What we do, SEC Nigeria. Retrieved from https://sec.gov.ng/about/whatwedo

Sheifer, A., & Vishny, R. W. (1997). Survey of corporate governance. The Journal of Finance, 52(2), 737-783.

Stake, R. E. (1995). The art of case study research.Thousand Oaks, CA: Sage.

Stake, R. E. (2010). Qualitative Research: Study how things work.New York, NY: The Guilford Press.

Stultz, R. M. (2009). Securities laws disclosure, and national capital markets in the age of financial globalization.Journal of Accounting Research, 47(2), 349-390. doi:10.1111/j.1475679x.200900327.x

Uwugiaren, I. (2017, January 15). Corporate governance code: The intrigues, politics and untold story. Thisday Newspapers. Retrieved from https://www.thisdaylive.com

Wild, P. J., McMahon, C., Darlington, M., Liu, S., & Culley, S. (2009). A diary study of information needs and document usage in the engineering domain. Design Studies. doi:10.1016/j.destud.2009.06.002

Yin, R. K. (2014). Case study research design and methods(5th ed.). Thousand Oaks, CA: Sage.

Zhao, J. (2016). Promoting a more efficient corporate governance model in emerging markets through corporate law. Washington University Global Studies Law Review, 15(3), 447-493. Retrieved from http://openscholarship.wustl.edu

Zinkin, J. (2012). Challenges in implementing corporate governance: Whose business is it anyway?Singapore, China: John Wiley & Sons.

Conference registration is required in order to view papers.