VALUE RELEVANCE OF CORPORATE GOVERNANCE DISCLOUSURE

AMONG LISTED AGRICULTURAL FIRMS IN NIGERIA

ETIGWAM Janet Ijeoma

MATRIC NO: 180601166

A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY

OF ADMINISTRATION AND MANGAGEMENT SCIEINCES, ADEKUNLE AJASIN

UNIVERSITY, AKUNGBA AKOKO, ONDO STATE IN PARTIAL FUFILMENT OF

FOR THE AWARD OF BARCHELOR OF SCIENCES (B.Sc)

DEGREE IN ACCOUNTING.

JANUARY, 2024.

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 DECLARATION

I, ETIGWAM Janet Ijeoma with matriculation number 180601070, declare that this research

was carried out under the supervision of Dr. M.E Alade of the Department of Accounting,

Faculty of Administration and Management Sciences, Adekunle Ajasin University, Akungba-

Akoko, Ondo State. I declare this project has not been presented either wholly or partially for the

award of any degree elsewhere.

…………………..…. ……………..……..
ETIGWAM Janet Ijeoma Signature & Date

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 CERTIFICATION

This is to cerfity that this research work was carried out by ETIGWAM Janet Ijeoma with

Matriculation Number 180601070 under the supervision in partial fulfillment of the requirement

for the award of B.Sc. (Hons) Degree in the Department of Accounting, Faculty of

Administration and Management Sciences, Adekunle -Ajasin University Akungba Akoko, Ondo

State, Nigeria.

………………………………. …………………….

Dr. M.E Alade Date

Supervisor

……………………………… ………………………

Dr. E.O. Oladiture Date

Head of Department

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 DEDICATION

This research work is dedicated to the Almighty God, the creator of the universe and the pillar of

my life, who have been the constant source of support and inspiration throughout this journey,

for his kindness in my life, by whose mercies I am alive today, the Alpha and Omega who has

made this height achievable for me to attain.

To my beloved parents, Mr. Ahmed Etigwam and Mrs. Patricia Etigwam, whose love and

sacrifices have shaped me into the person I am today. Your unwavering belief in my potential

has been the wind beneath my wings, propelling me forward even in the face of adversity. This

accomplishment is as much yours as it is mine.

This research is a testament to you, and it is with deep gratitude and love that I dedicate my work

to you.

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v
 ACKNOWLEDGEMENT

My unreserved appreciation geos to the Almighty God for his grace and mercy upon my life and

towards this academic journey and for the success of this academic research.

My profound gratitude goes to my energetic, dependable, wonderful and caring supervisor, Dr.

M.E Alade for his patience in scrutinizing each chapter and whose constructive corrections has

helped me in the success of this research. Thanks for your patience, tolerance, and persistence to

ensuring that this project work comes to realization.

I acknowledge and appreciate other lecturers in the Department of Accounting, Dr. E.O.

Oladiture (Head of Department), Dr. M.E Alade, Dr. O.E Igbekoyi, Dr. O.S Olabisi, Dr. W.H.

Agbaje, Dr. A.T. Adegbayibi, Dr. S.A. Adeusi, Dr. O.V. Ologun, Dr. A.E. Adegboyegun, Dr.

O.O. Aiyesan, Mrs. C.O. Gbemigun, Mr. S.R. Oloruntoba, Mr. A. Salemcity for their immense

contributions to this academic grand standing, you are all precious.

I am grateful to my parents, Mr. Ahmed and Mrs. Patricia Etigwan for their unending support,

morally and financially in the course of my academic pursuit and writing this project research. I

will forever be grateful to my circle, Yusuf Barakat Omowunmi, Saduana Ifelumi and

Akinwunmi Aisha you both have my unreserved gratitude, and to my beloved siblings and

families Kingsley Etigwan, Roselin Etigwwan, Richard Etigwan, Ebuzome Queen and Alade

Odunayo thank you for your support.

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 TABLE OF CONTENTS

TITLE PAGE
TITLE PAGE i
DECLARATION ii
CERTIFICATION iii
DEDICATION iv
ACKNOWLEDGEMENT v
TABLE OF CONTENTS vi
LIST OF TABLES vii
ABSTRACT x

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Research Questions 3
1.4 Objectives of the Study 3
1.5 Statement of Hypothesis 3
1.6 Significant of the Study 4
1.7 Scope of the Study 4

CHAPTER TWO: LITERATURE REVIEW

2.1 Conceptual Review 5
2.1.1 Value Relevance 6
2.1.2 Corporate Governance Disclosure 6
2.1.2.1 Board Gender Diversity Disclosure 8
2.1.2.2 Risk Disclosure 9
2.1.2.3 Audit Committee Financial Expertise Disclosure 10
2.1.3 Value Relevance of Corporate Governance Disclosure 11
2.2 Theoretical Review 13

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2.2.1 Agency Theory 13
2.2.2 Stakeholder Theory 14
2.2.3 Resource Dependence Theory 16
2.3 Empirical Review 17
2.4 Research Gap 22
2.5 Conceptual Framework 23

CHAPTER THREE: METHODOLOGY

3.1 Research Design 24
3.2 Source of Data
24
3.3 Population of the Study 25
3.4 Sample size and Sampling Technique 25
3.5 Method of Data Collection 25
3.6 Model Specification 26
3.7 Measurement of Variables 27
3.8 Data analysis Technique 28

CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND DISCUSSION OF

FINDINGS
4.1 Data Presentation 29
4.1.1 Descriptive Analysis 29
4.1.2 Data Normality 30
4.2 Data Analyses 31
4.2.1 Correlation Analyses 31
4.2.2 Regression Analyses 31
4.2.2.1 Test for Multicollinearity 33
4.2.2.2 Test for Heteroscedasticity 33
4.3 Test of Hypotheses 33
4.4 Discussion of Findings 34

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

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5.1 Summary of Findings 36
5.2 Conclusion 36

5.3 Recommendations 37

5.4 Contribution to Knowledge 37

REFERENCES 38

APPENDIX A 45

APPENDIX B 49

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 LIST OF TABLES

Table 2.1 Literature Mapping 19

Table 3.1 Variable Value Relevance 27

Table 4.1 Descriptive Statistics 29

Table 4.2 Normality Test 31

Table 4.3 Correlation Analysis 31

Table 4.4 Regression Analysis 32

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 ABSTRACT

The study focuses on the significance of corporate governance in Nigeria's agricultural sector,
emphasizing its role in transparency, accountability, and ethical practices. The research aims to
explore the relationship between governance and the Value Relevance of corporate governance
disclosure in listed agricultural firms in Nigeria. The study employs a multi-disciplinary
approach involving financial statement analysis, regression modeling, and stakeholder surveys to
provide comprehensive insights. The study adopts a mixed-method research design, combining
secondary data and historical research. It employs a logistic regression model and panel
regression techniques to analyze the impact of corporate governance disclosure on financial
performance, board composition, and company size. The population consists of 15 listed
Agricultural firms in Nigeria, and a census sampling technique is used to include all firms rather
than a subset. The sample includes 6 Agribusiness firms selected purposively based on data
availability and profitability performance over a 6-year period (2015 to 2020). With CGD
(Corporate Governance Disclosure) a limited dependent Variable, Coefficient of profitability
ratio, is a continuous variable, proxy by Return on Assets, Return on Equity, Earnings per Share
and Asset Turnover, Number of Executives and Company size, as a continuous Variable
In conclusion, corporate governance is crucial for safeguarding owners' interests, establishing
robust financial oversight, and improving performance. The study's findings suggest that while
the number of female directors may not significantly impact value relevance, enhanced risk
management disclosure positively influences it. However, increased audit committee financial
expertise appears to have an insignificant effect on value relevance.

Keywords: Return on Assets, Asset Turnover and Equity.

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