Expropriation through the use of power by the Chief Executive Officers (CEOs) has been identified as one of the key factors that led to the collapse of several firms globally. CEOs use their power for good or otherwise. Studies have identified CEO as the key among the elements that could make or mar a corporation. Board of directors is the supreme body in the organization that has the mandate to oversee the affairs of the organization. Diversity on the corporate board has been appreciated to be of great importance to the stakeholders in the organization. This study looks into the impact of the corporate board structure and diversity in serving as check on the excess of the executive power by the CEO. This study examines the extent and the determinants of CEO power in the Nigerian listed firms. The study uses secondary data from firms listed in Nigeria from 2011 to 2016. The use of 2011 as a threshold is to mark the period from when the most recent code of corporate governance is reissued. Descriptive statistics and multivariate regression analysis is used in obtaining the result of the analysis. The findings will be useful to both investors and regulatory bodies in that it will form the bases of decision making by the stakeholders and regulators. The results of this study will also contribute to the agency and resource dependency.
CEO power; Entrenchment; Diversity; Board structure
Paper Presentation in a Themed Session
Assistant Lecturer, Department of Accounting, Bauchi State University Gadau, Nigeria