Journals Information
Universal Journal of Accounting and Finance Vol. 10(1), pp. 317 - 326
DOI: 10.13189/ujaf.2022.100132
Reprint (PDF) (428Kb)
Directors' Efficiency and Performance of Enterprises Listed on the Nigerian Stock Exchange: A Motivation Perspective
Oliver Oji *
Department of Accountancy, Faculty of Business Administration, University of Nigeria Nsukka, Nigeria
ABSTRACT
Directors are a strategic factor of success in any enterprise, thus their motivation should form a fundamental aspect for efficient achievement of the overall objective and improve performance of an enterprise. This study examined the effect of directors' efficiency on the performance of enterprises listed on the Nigeria Stock Exchange (NSE). Therefore, the specific objectives of the study are to ascertain the effect of directors' efficiency factor (DEF) on return on capital employed (RoCE), Tobin's Q (TQ) and earnings per share (EPS). Hypotheses were formulated in alternate form as directors' efficiency factor has a significant effect on capital employed (RoCE), Tobin's Q (TQ) and earnings per share (EPS). In order to achieve the objectives stated above, the study adopted ex-post facto research design, and data were sourced from African Financials, Nigeria Stock Exchange (NSE) Fact Book and Annual Reports and Accounts of the enterprises under study. Eighty-eight enterprises were selected using purposive sampling technique from 2010 to 2019, and data collected were analyzed using panel data regression model. The study found that DEF has a positive and significant effect on RoCE, but has a negative and significant effect on EPS and has an insignificant negative effect on TQ. Hence, the study recommended that regulatory agencies of the government should ensure that remuneration/compensation/pay package of Directors is commensurate with the performance indicators of the enterprise; and fringe benefits for Directors should be structured as a means of motivation that could increase their efficiency. Stakeholders would continuously and critically review the activities of the Directors, analyze the growth rate as well as evaluate the performance indices of the enterprises in order to determine any form of augmentation.
KEYWORDS
Directors' Efficiency, Motivation, Enterprise Performance
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Oliver Oji , "Directors' Efficiency and Performance of Enterprises Listed on the Nigerian Stock Exchange: A Motivation Perspective," Universal Journal of Accounting and Finance, Vol. 10, No. 1, pp. 317 - 326, 2022. DOI: 10.13189/ujaf.2022.100132.
(b). APA Format:
Oliver Oji (2022). Directors' Efficiency and Performance of Enterprises Listed on the Nigerian Stock Exchange: A Motivation Perspective. Universal Journal of Accounting and Finance, 10(1), 317 - 326. DOI: 10.13189/ujaf.2022.100132.