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Author(s): Laura Imeide John, Olalekan O. Akinrinola (Ph.D.).

Volume/Issue: Volume 8, Issue 2 (2025)

Page No: 181-201

Journal: African Journal of Accounting and Financial Research (AJAFR)

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Abstract:

In recent times, effective governance has become a key indicator for determining the attractiveness of capital markets, particularly in developing economies such as Nigeria. Through its pivotal role in engineering economic growth, Nigeria’s capital market provides a platform for facilitating wealth transfer and enabling long-term investments. While the market continues to make significant progress, concerns about corporate governance practices among listed companies have raised questions about the effectiveness and performance of the market. This study examines the relationship between governance and the performance of the capital market in Nigeria from 1998 to 2024. The research employs quantitative analysis of secondary data from the Nigerian Exchange Group (NGX). Linear regression was utilized to assess the influence of governance proxied by institutional framework, legal and regulatory activism and market competition. Performance of the capital market is proxied by market capitalization. The findings reveal a significant relationship between effective corporate governance practices and capital market performance. The study concludes with policy recommendations for policymakers, regulators and business leaders to strengthen governance practices and enhance the performance of the Nigerian capital market.

Keywords:

Institutional Framework, Legal and Regulatory Activism, Market Capitalization, Market Competition.

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