AFAM Biennial Conference, 5TH BIENNIAL CONFERENCE - Nigeria 2020

Font Size: 
Corporate Governance Reforms’ Propositions: Institutional Prototypes and Social Antecedents
olabisi Daodu, Emmanuel Adegbite, Laurence Ferry

Last modified: 2019-08-12


While the literature has highlighted how corporate governance systems are embedded in their institutional contexts, the discourse on organisational changes has adopted a universal perspective. From the perspectives of institutional logics, this study promotes the understanding of the role of dominant organisational actors and institutional structuration in corporate governance reforms, within an evolving institutional setting. This study employs a qualitative research technique including in-depth interviews from key stakeholders (company regulators, listed companies and notable contributors) in the Nigerian corporate context supported by documentary research, to provide an understanding of the motivations for corporate governance reforms agenda, in this environment.

The findings disclose a lack of parallelism among relevant institutional indexes (state of the institutional mechanisms, configuration and actors’ ideology), which creates an internal propensity – ‘channel of transformation’ – contrary to the widely recognised global benchmark. Thus, corporate governance reforms in the country understudied – Nigeria­ – are shown to be institutionally driven rather than internationally directed.


Abor, J., & Fiador, V. (2013). Does corporate   governance explain dividend policy in Sub-  Saharan Africa? International Journal of Law & Management, 55 (3), 201-225.

Adegbite, E. (2012a). Corporate governance regulation in Nigeria. Corporate Governance, 12,        257-276.

Adegbite, E. (2012b). Corporate governance in the Nigerian banking industry: Towards       governmental engagement. International Journal of Business Governance and Ethics, 7 (3),            209-231.

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

Adegbite, E., & Nakajima, C. (2011). Institutional       determinants of good corporate          governance:     The     case of Nigeria. In E. Hutson, R. Sinkovics, & J. Berrill (Eds.),       Firm-level internationalisation, regionalism and globalisation (pp.379–396). Houndmills,       Basingstoke, UK: Palgrave MacMillan.

Adegbite, E., Amaeshi, K., & Nakajima, C. (2013). Multiple Influences on Corporate Governance   Practice in Nigeria: Agents, Strategies and Implications. International Business Review, 22,       524-538.

Aguilera, R. V., & Cuervo-Cazurra, A. (2004). Codes of good governance worldwide: What is the trigger? Organisation Studies, 25, 415–43.

Aguilera, R., & Cuervo-Cazurra, A. (2009). Codes of Good Governance. Corporate Governance:    An International Review, 17, 376-387.

Aguilera, R., & Jackson, G. (2003). The Cross-National Diversity of Corporate Governance:            Dimensions and Determinants', Academy of Management Review, 28, 447-465.

Aguilera, R., Filatotchev, I., Gospel, H., & Jackson, G. (2008). An Organisational Approach to        Comparative     Corporate Governance: Costs, Contingencies, and    Complementarities. Organisation Science, 19, 475-492.

Aguilera, R.V., & Crespí-Cladera, R. (2016). Global corporate governance: on the relevance of       firms’ ownership structure. Journal of World Business, 51, 50-57.

Ahmed, S. & Uddin, S. (2018). Toward a Political Economy of Corporate Governance         Change and Stability in Family Business Groups: A Morphogenetic Approach. Accounting,         Auditing & Accountability Journal, 31, 2192-2217.

Ahunwan, B. (2002). Corporate governance in Nigeria. Journal of Business Ethics, 37, 269–287.

Akinkoye, E., & Olasanmi, O. (2014). Corporate governance practice and level of compliance         among firms     in Nigeria: Industry analysis. Journal of Business & Retail Management    Research [serial online], 9,13-25.

Amao, O., & Amaeshi, K. (2008). Galvanising Shareholder Activism: A Prerequisite for      Effective Corporate Governance and Accountability in Nigeria. Journal Of Business Ethics,         82(1), 119-130.

Aoki, M. 2001. Towards a comparative institutional analysis. Cambridge, MA: MIT Press.

Arun, T., & Turner, J. (2004). Corporate Governance of Banks in Developing Economies:    concepts and issues. Corporate Governance: An International Review, 12, 371-377.

Atkinson, R (2003) Sampling, Snowball: Accessing hidden and hard-to-reach populations. In R.      Miller & J. Brewer. The A-Z of social research. London, United Kingdom: Sage UK.

Bakre, O.M. (2007). The unethical practices of accountants and auditors and the compromising       stance of professional bodies in the corporate world: Evidence from corporate Nigeria. Accounting Forum, 31, 277-303.

Besharov, M., & Smith, W. (2014). Multiple Institutional Logics in Organisations: Explaining         Their Varied Nature and Implications. Academy of Management Review, 39, 364-381.

Bryman, A., & Bell, E. (2011). Business and research methods, Third edition, Oxford University    press, New York.

Chizema, A. (2008). Institutions and Voluntary Compliance: The Disclosure of Individual   Executive Pay in     Germany. Corporate Governance: An International Review, 16(4), 359-     374.

Clarke T. (2007). International Corporate governance: a comparative Approach. London,   Routledge.

Clarke, T. (2015). The Transformation of Corporate Governance in Emerging Markets: Reform,     Convergence and Diversity. Emerging Markets Finance and Trade, 51, S25-S46.

Clarke, T. (2016). The continuing diversity of corporate governance: Theories of convergence         and variety. Ephemera: Theory and Politics in Organisation, 16,19-52.

Coffee Jr., J.C. (2005). A Theory Of Corporate Scandals: Why The Usa And Europe Differ.             Oxford Review Of Economic Policy, 21, 198-211.

Coffee, J. C. (1999). The Future as History: The Prospects for Global Convergence in Corporate      Governance and its Implications. Northwestern University Law Review, 93, 641-707.

Cohen, J., Krishnamoorthy, G., & Wright, A. (2008). Form versus Substance: The Implications       for Auditing     Practice and Research of Alternative Perspectives on Corporate      Governance. Auditing: A Journal of Practice and Theory, 27, 181-198.

Coombes, P., & Watson, M. (2001). Corporate reform in the developing world. The McKinsey         Quarterly, 4, 89–92.

Corbett, J. & Mayer, C. (1991). Financial Reform in Eastern Europe: Progress with the Wrong     Model. Oxford Review of Economic Policy, 7, 57-75.

Creswell, J. W., 2013. Qualitative Inquiry and research design: Choosing among five           approaches. 3rd edition. LA: Sage publications.

Cyert, R. M., and March, J. G. (1963). A behavioral theory of the firm. Prentice-Hall, Englewood    Cliffs, NJ.

Dacin, M. T., Goodstein, J., & Scott, W.R. (2002). Institutional theory and institutional change:       Introduction to the special research forum. Academy of Management Review, 45, 45–57.

Daily, C., Dalton, D., & Cannella Jr., A. (2003). Corporate Governance: Decades of Dialogue          and Data. Academy of Management Review, 28, 371-382.

Daodu, O., Nakpodia, F., & Adegbite E. (2017). Institutional Perspectives on Corporate       Governance reforms in Nigeria. In Corporate Governance in Developing and Emerging     Markets. Edited by Franklin   N. Ngwu, Onyeka K. Osuji and Frank H. Stephen. New York:     Routledge.

DiMaggio, P. J., & Powell, W.W. (1983). The iron cage revisited: Institutional isomorphism and     collective rationality in organisational fields. American Sociological Review, 48, 147–160.

Edelman L.B. (1992). Legal ambiguity and symbolic structures: organisational mediation of civil    rights law. American Sociological Review, 97, 1531–76.

Fama, E. (1980). Agency Problems and the Theory of the Firm. Journal of Political Economy,         88, 288–307.

Ferry, L., Zakaria, Z., Zakaria, Z., & Slack, R. (2017). Watchdogs, helpers or protectors? – Internal auditing in Malaysian Local Government. Accounting Forum, 41, 375-389.

Filatotchev, I, Jackson, G., & Nakajima, C. (2013). Corporate governance and national         institutions: A review and emerging research agenda. Asia Pacific Journal of Management, 30, 965-986.

Filatotchev, I., & Nakajima, C. (2014). Corporate governance, responsible managerial behaviour     and CSR:organisational Efficiency versusfil organisational legitimacy? Academy of         Management Perspectives, 28, 289-306.

Fiss, P. C., & Zajac, J. (2004). The Diffusion of Ideas over Contested Terrain: The (Non) adoption of a Shareholder Value Orientation among German Firms. Administrative Science Quarterly,      49, 501-534.

Flick U., (2011). Introducing research Methodology: A beginning guide to doing a research            project. London: Sage publications.

Folger, J. P., Hewes, D. E., & Poole, M. S. (1984). Coding social interaction. In B. Dervin & M.      J.Voigt (Eds.), Progress in communication sciences, (pp. 115-161). Norwood, NJ: Ablex.

George, E., Chattopadhyay, P., Sitkin, S., & Barden, J. (2006). Cognitive Underpinnings of Institutional     Persistence and Change: A Framing Perspective. Academy of Management            Review, 31, 347-365.

Giddens, A. (1979). Central problems in social theory: Action, structure and contradictions in        social     analysis. London: Macmillan.

Giddens, A. (1984). The constitution of society: Outline of the theory of structuration. Berkeley:      University of California Press.

Giddens, A. (1993). New Rules of Sociological Methods, ISBN 9780804722261.

Granovetter M. (1985). Economic action and social structure: the problem of embeddedness.           American Journal of Sociology, 91, 481-51.

Grbich, C., (2013). Qualitative data analysis: An introduction. CA Sage publications.

Greenwood, R., & Suddaby, R. (2006). Institutional Entrepreneurship in Mature Fields: The         Big Five Accounting Firms. Academy Of Management Journal, 49, 27-48.

Greenwood, R., Hinings, C. R., & Whetten, D. (2014). Rethinking institutions and organisations.     Journal of Management Studies, 51, 1206–20.

Harmon, D., Green, J., & Goodnight, G. (2015). A Model of Rhetorical Legitimation: The   Structure of Communication and Cognition Underlying Institutional Maintenance and Change.    Academy of Management Review, 40, 76-95.

Hennink, M., Hutter, I., and Bailey, A., (2011). Qualitative research Methods, Sage Publishing.       Online at <> Accessed 02.4.15.

International Monetary Fund (IMF)(2017). World economy outlook Database. <>Accessed 20.1.18.

International Monetary Fund (IMF), (2014b). World Economic and Financial Surveys; Regional     Economic Outlook: Sub-Saharan Africa ‘Staying the Course’ October 2014     [online]<> Accessed 02-        5-2015.

Jensen M.C., Meckling W.H. (1976). Theory of the firm: managerial behavior, agency costs and      ownership structure. Journal of Financial Economics, 3, 305-360.

Joseph, J., Ocasio, W., & Mcdonnell, M. (2014). The Structural Elaboration of Board           Independence: Executive Power, Institutional Logics, and the Adoption of Ceo-Only            Board Structures in U.S. Corporate     Governance. Academy Of Management Journal, 57,             1834-1858.

Khanna, T., Kogan, J., and Palepu, K. (2006). Globalization and dissimilarities in corporate governance: A     cross-country analysis. The Review of Economics and Statistics, 88, 69–90.

Krambia-Kapardis, M., & Psaros, J. (2006). The Implementation of Corporate Governance Principles in an Emerging Economy: a critique of the situation in Cyprus', Corporate Governance: An International Review, 14,126-139.

Kyereboah-Coleman, A. (2007). Corporate Governance and Shareholder Value Maximisation:         An African Perspective. African Development Review, 19 ,350-367.

La Porta, R., Lopez-De-Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world.   Journal of Finance, 54, 471–514.

La Porta, R., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R. (2000a). Investor protection and        corporate governance. Journal of Financial Economics, 58, 3–27.

Le, S., Kroll, M., & Walters, B. (2010). The impact of institutional changes on corporate governance mechanisms in transition economies. Journal Of Management & Governance, 14, 91-114.

Lee, S., & Taeyoung, Y. (2008). Competing Rationales for Corporate Governance in France:           Institutional Complementarities between Financial Markets and Innovation Systems.        Corporate Governance: An     International Review, 16, 63-76.

Lincoln Y. S., & Guba E. G. (1985). Naturalistic inquiry. London: Sage Publications, 221–49.

Lounsbury, M. (2007). A tale of two cities: Competing logics and practice variation in the    professionalizing of mutual funds. Academy of Management Journal, 50: 289 –307.

Maguire, S., Hardy, C., & Lawrence, T. B. (2004). Institutional entrepreneurship in emerging          fields:     HIV/AIDS Treatment Advocacy In Canada. Academy Of Management Journal, 47,          657-679.

Mangena, M., & Tauringana, V. (2007). Disclosure, Corporate Governance and Foreign Share         Ownership     on the Zimbabwe Stock Exchange. Journal Of International Financial       Management & Accounting, 18,53-85.

Marquis, C., & Lounsbury, M. (2007), 'Vive La Résistance: Competing Logics and The        Consolidation of U.S. Community Banking. Academy of Management Journal, 50, 799-820.

Marshall, M.N. (1996). Sampling for qualitative research. Family Practice. Oxford University         Press. Vol.13, No. 6. Printed in Great Britain. Accessed 15- 6-17.

Martin, G., Currie, G., Weaver, S., Finn, R., & McDonald, R. (2017). Institutional Complexity        and Individual Responses: Delineating the Boundaries of Partial Autonomy. Organisation          Studies (01708406), 38,103-127.

Meyer, I. W., Scott, W. R., & Strang, D. (1987). Centralization, fragmentation, and school district   complexity. Administrative Science Quarterly, 32, 186-201.

Meyer, J. W., & Rowan, B. (1977). Institutionalized Organisations: Formal Structure as Myth          and Ceremony. The American Journal of Sociology, 83, 340-363.

Misangyi, V., & Acharya, A. (2014). Substitutes Or Complements? A Configurational          Examination Of     Corporate Governance Mechanisms. Academy Of Management Journal,    57 1681-1705.

Nakpodia, F., & Adegbite, E. (2018). Corporate governance and elites. Accounting Forum, 42,        17-31.

Nigerian Stock Exchange Q1 Fact Sheet, 2018: <     market-information-site/NSE%20Fact%20Sheet/Q1%20Fact%20Sheet%20-%202018.pdf>

Nmehielle, V., & Nwauche, E. (2004). External-internal standards in corporate governance in          Nigeria. The     George Washington University Law School Public Law and Legal Theory Working Paper, 115, 1-50.

Ntim, C., & Soobaroyen, T. (2013). Corporate Governance and Performance in Socially       Responsible     Corporations: New Empirical Insights from a Neo-Institutional       Framework. Corporate Governance: An International Review, 21, 468-494.

Ocasio, W. (1997). Towards an attention-based view of the firm. Strategic Management Journal, 18 (summer special issue), 187–206.

Ocasio, W., & Radoynovska, N. (2016). Strategy and commitments to institutional logics:    Organisational heterogeneity in business models and governance. Strategic    Organisation, 14, 287-309.

Okike, E. N. M. (2007). Corporate governance in Nigeria: The status quo. Corporate            Governance: An International Review, 15, 173–193.

Okike, E. N. M., & Adegbite. E. (2012). The Code of Corporate Governance In Nigeria:      Efficiency Gains Or Social Legitimation? Corporate Ownership & Control, 9, 2012.

Okike, E., Adegbite, E., Nakpodia, F., & Adegbite, S. (2015). A Review of Internal and External     Influences     on Corporate Governance and Financial Accountability in Nigeria.             International Journal of Business Governance and Ethics, 10, 165-185.

Oliver, C. (1991). Strategic Responses to Institutional Processes. Academy of Management Review, 16, 145-179.

Osemeke, L. and Adegbite, E. (2016). Regulatory multiplicity and conflict: Towards a combined     code on corporate governance in Nigeria. Journal of Business Ethics, 133, 431-451.

Payne, G., & Payne, J. (2004). Key concepts in social research. SAGE publications Inc., London.

Rao, H., & Singh, J. (2001). The construction of new paths: Institution-building activity in the         early automobile and biotech industries. In R. Garud & P. Karnoe (Eds.), Path dependence            and creation: 243–267. London: Erlbaum.

Reay, T., & Jones, C. (2016). Qualitatively capturing institutional logics. Strategic Organisation,    14, 441-454.

Rediker, K. J., & Seth, A. (1995). Boards of directors and substitution effects of alternative governance mechanisms. Strategic Management Journal, 16, 85–100.

Reed, D. (2002). Corporate governance reforms in developing countries. Journal of Business           Ethics, 37, 223-247.

Rossouw, G.J. (2005). Business Ethics and Corporate Governance in Africa. Business & Society,     44, 94-106.

Rowley, J., (2012). Conducting research interviews. Management Research Review, 35, 260            – 271.

Rueda-Sabater, E. (2000). Corporate Governance: And the Bargaining Power of Developing            Countries to Attract Foreign Investment. Corporate Governance: An International Review,           8, 117.

Rwegasira, K. (2000). Corporate Governance in Emerging Capital Markets: whither Africa?            Corporate Governance: An International Review, 8, 258.

Sarason, Y. (1995). A Model of Organisational Transformation: The Incorporation of           Organisational Identity into A Structuration Theory Framework. Academy of Management Best Papers Proceedings, 47-51.

Schwandt, D., & Szabla, D. (2013). Structuration Theories and Complex Adaptive Social     Systems: Inroads to Describing Human Interaction Dynamics. Emergence: Complexity & Organisation, 15, 1-20.

Scott, R. W. (1995). Institutions and Organisations. Thousand Oaks, CA: Sage.

Scott, W. R. (2001). Institutions and Organisations. (2nd edn), Sage, Thousand Oaks, CA.

Scott, W. R., & Meyer J.W. (1987). Environmental linkages and organisational complexity:            public and     private schools in Comparing public and private schools. Henry M. Levin and       Tom James (eds.), 128-160. New York: Falmer Press.

Selznick, P. (1949). TVA and the grass roots. Berkeley: University of California Press.

Shipilov, A., Greve, H., & Rowley, T. (2010). When Do Interlocks Matter? Institutional Logics       and The Diffusion of Multiple Corporate Governance Practices. Academy of    Management Journal, 53, 846-           864.

Shleifer A., & Vishny R. W.  (1997). A Survey of Corporate Governance. The Journal of Finance, 52, 737-783.

Sobhan, A (2016). Where Institutional Logics of Corporate Governance Collide: Overstatement      of Compliance in a Developing Country, Bangladesh. Corporate Governance: An         International Review, 24, 599-61.

Soederberg, S. (2003). The promotion of 'Anglo-American' corporate governance in the South:        who benefits from the new international standard? Third World Quarterly, 24(1), 7-27.

Strang, D., & Soule, S. (1998). Diffusion In Organisations and Social Movements: From Hybrid      Corn to Poison Pills. Annual Review of Sociology, 24, 265.

The Organisation for Economic Co-operation and Development (OECD),1999;     <      cLangu    age=En> Accessed 16.1.18.

Thornton, P. (2002). The rise of the corporation in a craft industry: Conflict and conformity in         institutional logics. Academy of Management Journal, 45, 81–101.

Thornton, P. H., & Ocasio, W. (1999). Institutional logics and the historical contingency of power   in organisations: Executive succession in the higher education publishing industry, 1958 –       1990. American Journal of Sociology, 105, 801– 843.

Thornton, P. H., Ocasio, W., & Lounsbury, M. (2012). The institutional logics perspective. Oxford: Oxford University Press.

Tolbert, P. S. and Zucker, L. G. (1983). Institutional Sources of Change in the Formal Structure       of Organisations: The Diffusion of Civil Service Reform, 1880–1935, Administrative Science   Quarterly, 28, 22–39.

Tosi, H. L. (2008). Quo vadis? Suggestions for future corporate governance research. Journal of      Management and Governance, 12,153–169.

Tracy, S.J. (2013). Qualitative research methods: Collecting Evidence, Crafting Analysis,    Communicating impact. Chichester, west Sussex: Wiley – Blackwell.

Tsamenyi, M., Enninful-Adu, E., & Onumah, J. (2007). Disclosure and corporate governance in      developing countries: evidence from Ghana. Managerial Auditing Journal, 22, 319-334.

Tsamenyi, M., Noormansyah, I., & Uddin, S. (2008). Management controls in family-owned           businesses (FOBs): A case study of an Indonesian family-owned University. Accounting            Forum, 32, 62-74.

Uche, C. O., & Atkins, J. F. (2015). Accounting for rituals and ritualisation: The case of       shareholders’     associations. Accounting Forum, 39, 34-50.

Uche, C. O., Adegbite, E. & Jones, M. (2016) “Institutional shareholder activism in Nigeria: An     accountability perspective” Accounting Forum, 40, 78-88

Udayasankar, K., Das, S., & Krishnamurti, C. (2005). Integrating multiple theories of corporate       governance: a multi-country empirical study. Academy of Management Proceedings, 01–06.

Van den Berghe, L., & De Ridder, L. (1999). International Standardisation of Good Corporate    Governance. Kluwer, Dordrecht.

Walsh, J., & Seward, J. (1990). On the Efficiency of Internal and External Corporate Control     Mechanisms.  Academy of Management Review, 15, 421-458.

Westphal, J. D., & Zajac, E. J. (1994). Substance and symbolism in CEOs’ long-term incentive        plans.     Administrative Science Quarterly, 39, 367–390.

Westphal, J. D., & Zajac, E. J. (2001). Explaining institutional decoupling: The case of stock           repurchase programs. Administrative Science Quarterly, 46, 202–228.

Westphal, J. D., Gulati, R. and Shortell, S. M. (1997). Customization or Conformity: An      Institutional and Network Perspective on the Content and Consequences of TQM         Adoption.        Administrative Science Quarterly, 42, 366–394.

World Bank Article-Capital Market, June.28.2017;     <> Accessed 27. 11.2017.

Yakasai, A. G. (2001). Corporate Governance in a Third World Country with Particular       Reference to Nigeria. Corporate Governance: An International Review, 9, 238.

Yoshikawa, T., & Rasheed, A. (2009). Convergence of Corporate Governance: Critical Review       and Future Directions. Corporate Governance: An International Review, 17, 388-404.

Young, M., Peng, M. W., Ahlstrom, D., Bruton, G., & Jiang, Y. (2008). Corporate governance in    emerging economies: A review of the principal–principal perspective. Journal of Management            Studies, 45, 196– 220.

Zajac, E. J., & Westphal, J. D. (1994). The Costs and Benefits of Managerial Incentives and             Monitoring in             Large U.S. Corporations: When is More not Better? Strategic Management            Journal15, 121-142.

Zattoni, A., & Cuomo, F. (2008). Why Adopt Codes of Good Governance? A Comparison of           Institutional and Efficiency Perspectives. Corporate Governance: An International Review,          16,1-15.

Zucker, L. G. (1987). Institutional theories of organisation. Annual Review of Sociology, 13, 443–   464.

Conference registration is required in order to view papers.