Globalization and Corporate Governance Mechanism, Engine of Change

Abstract

This study is undertaking to investigate the effect of the various dimensions of globalization on corporate governance sub-indices of listed companies in Nigeria and Ghana. The study used a panel data of nonfinancial companies listed on Nigeria and Ghana stock exchange for the period 2012 – 2016 with total observation of 510. Using KOF Globalization Index which entails composite index measuring economic, social and political dimension of globalization. It was discovered that all the dimensions of globalization influence the corporate governance mechanisms. The impact of globalization on sectors of the economies clearly shows that West African countries have been greatly influenced by globalization for resource utilization and improvement in living standard. Although poverty still seems to be high, it is of no doubt that globalization has sharpened the economic efficiency and sustainable growth and financial stability base on continuous improvement on corporate governance mechanisms for the achievement of better economic stability.