Shareholders Right and Corporate Performance

Abstract

This study examined the relationship between shareholders right and corporate performance. A sample of twelve firms listed on Nigeria Stock Exchange covering eleven years between 2002 and 2012 was used. Four hypotheses were formulated and tested. Ordinary Least Square (OLS) was adopted as a method of estimation on the dependent and independent variables. The results revealed a positive and significant relationship between audit membership, audit chairmanship and corporate performance. However, there is no positive and significant relationship between voting right and access to information and corporate performance.  The study therefore concludes that Contrary to   what is obtainable in most developed countries of the world that Shareholders rights impact very poorly on the performance of the firms in Nigeria. However, the study recommends that there is need for adequate and timely dissemination of information to the shareholders whose actions are dependent on the information obtainable by them. There should also be a defined process where shareholders can institute action against the company's management for not delivering timely information to them, the registrars of companies should monitor the quality of information made available to the shareholders by the companies' management, and  there should be strict sanction on the companies' management who try to romance with the shareholders' right.