Corporate Governance and the Performance of Seasoned Equity Offering Firms in Nigeria: The Mediating Effect of Agency Costs
Journal of Finance and Accounting
Volume 4, Issue 3, May 2016, Pages: 111-125
Received: Apr. 6, 2016; Accepted: Apr. 18, 2016; Published: May 14, 2016
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Authors
Mohammed Aminu Bello, Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria
Aminu Kado Kurfi, Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria
Bamidele Adeboye Adepoju, Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria
Abdu Ja’afaru Bambale, Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria
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Abstract
The objective of this study is to implement Analysis of Moment Structure (AMOS) at the same time analysing the power of corporate governance on Post – Seasoned Equity Offerings (SEO’s) performance as well as in determining whether agency costs exist as a mediating variable between them. We conjecture that the mediating function of agency costs reduction is fundamental to the causal relationship between corporate governance and Post-SEO underperformance. Failure to tackle agency costs as a mediating variable may perhaps be one reason for the inconclusive findings in the allied literature. This study intends to focus on an SEO sample, for the reason that it is essential to evaluate how better corporate governance mechanisms can enhance SEO performance by estimating the relationship between different variables. To achieve this, the study will apply the approach and analyse SEOs in Nigeria from 2005-2015.
Keywords
Equity, Corporate Governance, Agency Costs, Performance
To cite this article
Mohammed Aminu Bello, Aminu Kado Kurfi, Bamidele Adeboye Adepoju, Abdu Ja’afaru Bambale, Corporate Governance and the Performance of Seasoned Equity Offering Firms in Nigeria: The Mediating Effect of Agency Costs, Journal of Finance and Accounting. Vol. 4, No. 3, 2016, pp. 111-125. doi: 10.11648/j.jfa.20160403.13
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Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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