Institutional Shareholder Activism in Nigeria

Uche, C., Adegbite, E. and Jones, M. (2016), "Institutional shareholder activism in Nigeria", Corporate Governance: the international journal of business in society, Vol.16 (4), pp. 1-16.

16 Pages Posted: 27 Jan 2020

See all articles by C. Uche

C. Uche

Independent

Emmanuel Adegbite

University of Nottingham

M. Jones

Independent

Date Written: 2016

Abstract

Purpose- The purpose of this paper is to investigate institutional shareholder activism in Nigeria. It addresses the paucity of empirical research on institutional shareholder activism in sub-Saharan Africa.

Design/Methodology- This study employs agency theory to understand the institutional shareholder approach to shareholder activism in Nigeria. The data is collected through qualitative interviews with expert representatives from financial institutions.

Findings- The findings indicate evidence of low-level shareholder activism in Nigeria. The study provides empirical insight into the reasons why institutional shareholders might adopt an active or passive approach to shareholder activism. The findings suggest the pension structure involving two types of pension institutions affects the ability to engage in shareholder activism.

Research implications- The research study advances our understanding of the status-quo of institutional shareholder activism in an African context such as Nigeria.

Practical implications- The paper makes a practical contribution by highlighting that regulators need to consider how the financial market conditions and characteristics affect effective promotion of better governance practices and performance through shareholder activism.

Originality- This study draws attention to the implication for shareholder activism of complexities associated with an institutional arrangement where two types of financial institutions are expected to operate and manage the private pension funds in a country.

Keywords: Agency Theory, Institutional Shareholders, Nigeria, Shareholder Activism

Suggested Citation

Uche, C. and Adegbite, Emmanuel and Jones, M., Institutional Shareholder Activism in Nigeria (2016). Uche, C., Adegbite, E. and Jones, M. (2016), "Institutional shareholder activism in Nigeria", Corporate Governance: the international journal of business in society, Vol.16 (4), pp. 1-16., Available at SSRN: https://ssrn.com/abstract=3512788 or http://dx.doi.org/10.2139/ssrn.3512788

C. Uche

Independent

Emmanuel Adegbite (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

M. Jones

Independent

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
24
Abstract Views
269
PlumX Metrics