Building The Nigerian Corporate Governance Index (NCGI) and Intellectual Capital Disclosure Practices
Aliyu Muhammad Nasir, Ifa Rizad Mustapa
To assess the standard of corporate governance procedures used by Nigerian publicly traded companies in 2020–2021, a comprehensive corporate governance index, or NCGI, was created. In order to create the initial NCGI, which consists of five sub-indices and 52 factors, we manually gather governance data for listed organizations in the Nigerian Exchange Group and assess all firms' corporate governance procedures. Also, we look at the intellectual capital disclosure practices of Nigerian publicly traded companies using a disclosure checklist adapted from Abeysekera and Guthrie. The findings indicate that during the study period, corporate governance reform did not advance in Nigerian corporations. The ownership structure and board committee components have the weakest governance, according to the total NCGI mean, which is 70.64% and 69.25%, respectively. The highest level of governance is seen in board structures, where the mean value is roughly 86.03 of the maximum value of 100. Board disclosure and procedure practices are roughly 82.11% and 83.60%, respectively. In comparison to non-financial industries, the financial industry has the highest governance structure, according to the results. Also, publicly traded companies disclose below average intellectual capital information for the period under consideration. The NCGI will assist regulatory agencies like the Central Bank of Nigeria, the Securities and Exchange Commission, and the Financial Reporting Council of Nigeria in developing policies meant to increase investor confidence in the Nigerian economy.
Keywords: Nigerian corporate governance index, Board structure, Board committee, FRCN, SEC, Board procedure, Ownership structure
