ABSTRACT

This research work examined the effect of corporate governance structure on institutional investment of selected quoted companies in Nigeria. It extracted data from annual reports of selected firms listed in the Nigerian Stock Exchange. The objective of the study is to determine the effect of corporate governance structure on institutional investment of selected quoted companies in Nigeria. Director Equity Interest, Proportion of non-executive directors and Size of Board were used as proxies for corporate governance structure while ownership share of foreign and domestic institutional investors were used as proxies for institutional investment. The research design employed was ex post facto research design. Analyses of data and testing of hypotheses were done through the aid of statistical tools such as tables, and regression technique. It was discovered that there is a significant relationship between proportion of non- executive directors and ownership share of foreign institutional investors of selected quoted companies in Nigeria. The results further indicate a signlcant relationship between Board size and ownership share of domestic institutional investors and between Directors Equity interest and institutional investment. One of the most striking differences between countries' corporate governance systems is the difference in the ownership and control of firms that exist across countries. There are tradeoffs between ownership concentration and voting power concentration. Systems of corporate governance can be distinguished according to the degree of ownership and control and the identity of controlling shareholders. Based on the findings of the study, it is recommended that manufacturing firms in making decisions bothering on board composition, should ensure a higher proportion of non-executive directors while also taking measures that will ensure that the set ofpersons who make up the non-executive directors class 4 have the financial expertise and are capable of making investment decisions that will favour foreign investors.