Comparative analysis on the role of corporate boards: empirical evidence from sub-Saharan Africa

This paper examines the role and responsibilities of a firms' board of directors on corporate governance. Using survey questionnaire based on international corporate governance norms, data were collected from listed firms in Ghana, Nigeria and South Africa. The conclusions are as follows: 1) the results show that commitment of board of directors to disclosure and communication may provide effective corporate practices; 2) however, in Nigerian firms, we find that separation of role and responsibilities of chairman and CEO is likely to hinder corporate governance practices; 3) the attention to executive compensation by the board of directors has a negative influence on rule and laws of corporate governance of firms, this is probably arising from the absence of an executive compensation committee. We recommend that the regulatory bodies of corporate governance need to put emphasis on nonbinding advisory vote by shareholders on executive compensation. There may be separation of role and responsibilities between chairman and CEO in Nigerian firms, however there is need for more effective chairman and CEO.