African Journal of Political Science

African Journal of Political Science ISSN 3461-2165 Vol. 11 (9), pp. 001-009, September, 2017. © International Scholars Journals

Full Length Research Paper

Corporate governance and maximization of shareholder value: Theoretical analysis from Francophone countries in Africa

Gérard TCHOUASSI¹* and Benjamin OUEDRAOGO NOSSEYAMBA²

¹Department of Economics, Faculty of Economics and Management, University of Yaoundé II, P. O. Box 1365 Yaoundé, Cameroon.

²UFR/SEG, University of Koudougou, Burkina Faso.

Accepted 18 June, 2017

Abstract

This research looks at the theoretical impact of corporate governance on shareholder value maximization in some Francophone countries in the CFA Zone in Africa. Data from Burkina Faso, Cameroon, Côte d’Ivoire and Gabon covering the period 2005 to 2009 were used and theoretical analysis done. Theoretical results show that, though highly dispersed, both within and between enterprises, corporate boards in the selected countries are relatively not independent. Our paper also shows that both sector and country-specific effects have an impact on shareholder value maximization. While the mining sector is dominant in maximizing shareholder value, it also suffers from higher taxes and interest payments.

Key words: Corporate governance, shareholder value, corporate performance.