Neither Principles nor Rules: Making Corporate Governance Work in Sub-Saharan Africa

50 Pages Posted: 27 Jan 2020

See all articles by Franklin Nakpodia

Franklin Nakpodia

Independent

Emmanuel Adegbite

University of Nottingham

Kenneth Amaeshi

University of Edinburgh Business School; Cranfield University - School of Management

A. Owolabi

affiliation not provided to SSRN

Date Written: 2018

Abstract

Corporate governance is often split between rule-based and principle-based approaches to regulation in different institutional contexts. This split is often informed by the types of institutional configurations, their strengths, and the complementarities within them. This approach to corporate governance regulation is mostly discussed in the context of developed economies and their regulatory demands. However, in developing and weak market economies, such as in Sub-Saharan Africa, there is no such explicit split and the debates on such contexts in the comparative corporate governance literature has been meagre. Nonetheless, there are sparks of good corporate governance practices in the region. Drawing from institutional theory and a case study of Nigeria – Africa’s largest economy – we explore the appropriateness or suitability of corporate governance regulatory frameworks in Sub-Saharan Africa. Our findings suggest that Nigeria needs an integrated system that combines elements of both rule-based and principle-based regulation, supported by a multi-stakeholder co-regulation strategy. This paper departs from the mainstream rule-based and principle-based categorisations by forging ahead new perspectives on corporate governance regulation, especially in weak market economies.

Keywords: Corporate governance, Sub-Saharan Africa (Nigeria), principles-based, rule-based, co-regulation, institutional theory; culture

Suggested Citation

Nakpodia, Franklin and Adegbite, Emmanuel and Amaeshi, Kenneth and Owolabi, A., Neither Principles nor Rules: Making Corporate Governance Work in Sub-Saharan Africa (2018). Available at SSRN: https://ssrn.com/abstract=3512771 or http://dx.doi.org/10.2139/ssrn.3512771

Franklin Nakpodia

Independent

Emmanuel Adegbite (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Kenneth Amaeshi

University of Edinburgh Business School ( email )

29 Buccleuch Place
Central Area
Edinburgh, Scotland EH8 9JS
United Kingdom

HOME PAGE: http://https://www.business-school.ed.ac.uk/about/people/738/Kenneth/Amaeshi

Cranfield University - School of Management ( email )

Bedfordshire, MK43 0AL
United Kingdom

A. Owolabi

affiliation not provided to SSRN

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