Relevance of Accounting Theory to Business Corporate Governance Performance in Nigeria

Abstract

The study examined the relevance of accounting theory to business corporate governance performance in Nigeria. Company performance Panel data were used and the preliminary tests indicated the use of fixed effect model being appropriate for data analysis. Findings revealed that block ownership leads to increase in company performance while other variables are indifferent to company performance. This has implication to theory and practitioner as accounting profession has made valuable contributions toward ensuring good corporate governance in banking sector. It is recommended that future corporate governance codes should contain provision on board effectiveness and that the organization should be consistent with type of accounting theory adopted in preparation of the various accounting records since there is proportional relationship between accounting theory and corporate performance.

Keywords: Accounting Theory, Corporate Business, Corporate Governance, Normative     Accounting Theory, Positive Accounting Theory, Large shareholders and Company Performance.