An Investigation of Board Effectiveness and Shareholder Value Creation in Nasarawa State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
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- Recommended for :
- NGN 5000
Background of the Study
Board effectiveness is a critical determinant of shareholder value creation, reflecting the board's ability to oversee management, formulate strategic policies, and ensure accountability (Eze & Okonkwo, 2023). An effective board aligns corporate objectives with shareholder interests, thereby fostering long-term value creation. Globally, governance frameworks emphasize the composition, diversity, and independence of boards to enhance their effectiveness.
In Nasarawa State, corporate entities contribute significantly to economic activities, yet challenges such as ineffective board oversight and limited shareholder engagement persist. These challenges undermine the potential for value creation and necessitate a thorough investigation into board effectiveness as a governance mechanism.
Statement of the Problem
Despite the critical role of boards in governance, many organizations in Nasarawa State struggle with ineffective board structures, poor decision-making, and limited accountability. These issues often lead to conflicts of interest, reduced shareholder confidence, and diminished value creation (Adamu & Yusuf, 2024). This study addresses these issues by investigating the relationship between board effectiveness and shareholder value creation in the state.
Objectives of the Study
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To evaluate the factors influencing board effectiveness in organizations in Nasarawa State.
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To assess the impact of board effectiveness on shareholder value creation.
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To propose strategies for enhancing board performance to maximize shareholder value.
Research Questions
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What factors influence board effectiveness in organizations in Nasarawa State?
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How does board effectiveness impact shareholder value creation?
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What strategies can enhance board performance to improve shareholder value?
Research Hypotheses
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Effective boards significantly enhance shareholder value creation.
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Weak board governance negatively impacts shareholder value creation.
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Improved board diversity enhances overall organizational performance.
Scope and Limitations of the Study
The study focuses on organizations in Nasarawa State, particularly examining the relationship between board effectiveness and shareholder value creation. Limitations may include restricted access to board meeting records and potential biases in data collection from corporate executives.
