Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Fostering of Efficiency and Generality of Cooperate Governance Frameworks in Nigeria and Jordan

Author(s): Yusuf Jelili Amuda, Basiem Al-Shattarat

There has been overwhelming literature that explored the operations and mechanisms of corporate governance in enhancing, standardising, and stabilising the activities of enterprises, associations and economic viabilities of different countries. The financial and economic instabilities are reasons for an emphasis on corporate governance in order to entrench the business, economic, investment and enterprise activities in contemporary time. There has been insufficient academic research exploring comparative analysis in fostering the efficiency and inclusiveness of corporative governance in order to improve the operations and entrench the principles of corporate governance frameworks in developing countries such as Africa (e.g. Nigeria) and the Arab world (e.g. Jordan). The objective of the paper is to provide insight into the association between efficiency and inclusiveness of Cooperate Governance frameworks in Nigeria and Jordan based on Asian financial crisis of 1998 and the global financial crisis of 2008 that affected the global economy which led to the fundamental entrenchment of corporate governance. Content analysis and systematic literature review (SLR) were used as the paper’s methodology where themes were generated. The findings of the paper demonstrated that the Asian financial crisis of 1998 and the global financial crisis of 2008 that affected the global economy led to the fundamental entrenchment of corporate governance. In 2000, the Nigerian government under the Securities and Exchange Commission (SEC) initiated the Committee on Cooperate Governance of Public Governance (CCGPG) to provide Code of Best Practices, while in 2003, the Jordanian government under the Ministry of Industry and Trade initiated Companies Control Department (CCD). The findings demonstrated the framework of corporate governance based on five major factors, namely: regulations and codes relating to corporate governance, (ii.) organisational structure & protection of shareholders, (iii.) transparency, disclosure & accountability, (iv.) social cost & expenditure disclosure, (v.) gender diversity & capabilities towards efficiency and inclusiveness of corporate governance. It is thereby suggested that both Nigerian and Jordanian governments should stress the efficiency and effectiveness of applicability, monitoring and implementing corporate governance principles according to the global standards.

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