Board Involvement on Earnings Per Share (EPS): Evidence from A Developing Economy

Main Article Content

TOCHUKWU CHRISTIAN NWOKWU
PRADEEP M. P. DHARMADASA
PRASATH D. L. M. RATHNASINGHA

Abstract

This research aims to investigate the effect of board involvement on earnings per share. The current study uses the correlation and regression models to analyze publicly available data for a sample of 69 firms quoted in the Nigerian Stock Exchange for the fiscal year 2011. This indicates that the research made use of cross sectional data. Several diagnostic tests have been applied to justify the validity of the results. The empirical investigations reveal that director’ shareholdings, board size and board skills have significant impact on performance. Good corporate governance standards are very essential to every organization and should be encouraged and practiced for the interest of the investors, shareholders and other stakeholders. Is worthy of note, that from a developing country like Nigeria, especially in sub-Saharan Africa, this paper is the first of its kind and offers evidence on the effect of board involvement on earnings per share. The paper provides useful information that is of great value to policy makers, academia, corporate firms and other stakeholders.

Downloads

Download data is not yet available.

Article Details

How to Cite
NWOKWU, T., M. P. DHARMADASA, P., & D. L. M. RATHNASINGHA, P. (2018). Board Involvement on Earnings Per Share (EPS): Evidence from A Developing Economy. International Journal for Innovation Education and Research, 6(5), 130-141. Retrieved from http://ijier.net/index.php/ijier/article/view/1031
Section
Articles
Author Biographies

TOCHUKWU CHRISTIAN NWOKWU, UNIVERSITY OF COLOMBO

POST GRADUATE & MID-CAREER DEVELOPMENT UNIT, GRADUATE STUDENT

PRADEEP M. P. DHARMADASA, University of Colombo, Colombo, Sri Lanka

Department of International Business

PRASATH D. L. M. RATHNASINGHA, University of Colombo, Colombo, Sri Lanka

Department of Finance

References

Achchuthan, S., & Kajananthan, R. (2013). Corporate governance practices and firm performance: Evidence from Sri Lanka. European Journal of Business and Management, 5 (1), 19-27.
Adegbite, E., Amaeshi, K., & Amao, O. (2012). The politics of shareholder activism in Nigeria. Journal of Business Ethics, 105 (3), 389-402.
Ahunwan, B. (2002). Corporate governance in Nigeria. Journal of Business Ethics, 37 (3), 269-287.
Azeez, A. A. (2015). Corporate governance and firm performance: Evidence from Sri Lanka. Journal of Finance and Bank Management, 3 (1), 180 – 189.
Cadbury Report (1992). The financial aspects of corporate governance.
Carver, J. (2010). A case for global governance theory: Practitioners avoid it, academics narrow it, the world needs it. Corporate governance: An International Review, 18 (2), 149-157.
Chisanga, P. D. (2010). Global corporate governance forum. International Finance Corporation (IFC).
Chitayat, G. (1984). The role of the board of directors in practical terms. Management International Review, 24 (1), pp. 71-77.
Dharmadasa, P., Premarthne, G., & Hearth, S. K. (2014). Corporate governance, board characteristics and firm Performance. Evidence from Sri Lanka. 21 (1), 7-31.
Ees, H. V., Postma, T. J. B. M., & Sterken, E. (2003). Board characteristics and corporate performance in the Netherlands. Eastern Economic Journal, 29 (1), 41-58.
Fama, E.F., & Jensen, M.C. (1983). Separation of ownership and control. The Journal of Law and Economics, 26 (2), 301-325.
Iyengar, R.J., & Zampelli, E.M. (2009). Self-selection, endogeneity, and the relationship between CEO duality and firm performance. Strategic Management Journal, 30 (10), 1092-1112.
Judge, W. Q., & Zeithaml, C. P. (1992). Institutional and strategic choice perspectives on board involvement in the strategic decision process. Academy of Management Journal, 35, 766–794.
Morck, R., & Yeung, B. (2009). Never waste a good crisis: An historical perspective on comparative corporate governance. Annual Review of Financial Economics, 1, 145-179.
Pearce II, J. A., & Zahra, S.A. (1991). The relative power of CEOs and boards of directors: Associations with corporate performance. Strategic Management Journal, 12 (2), pp. 135-153.
Senaratne, S., & Gunaratne, P. S. M. (2008). Corporate governance development in Sri Lanka: prospects and problems.
Stickel, S.E. (1990), “Predicting individual analyst earnings forecasts”, Journal of Accounting Research, Vol. 28 No. 2, pp. 409-417.
Wijethilake, C., Ekanayake, A., & Perera, S. (2015). Board involvement in corporate performance: evidence from a developing country. Journal of Accounting in Emerging Economies, 5 (3), 250 – 268.