Institutional shareholder activism in Nigeria

Journal Publication ResearchOnline@JCU
Uche, Chinyere;Adegbite, Emmanuel;Jones, Michael John
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.

Journal

Corporate Governance: international journal of business in society

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Volume

16

ISBN/ISSN

1472-0701

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Issue

4

Pages Count

13

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Publisher

Emerald Group Publishing

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Date

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EISSN

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DOI

10.1108/CG-12-2015-0172