Country-level corporate governance and protection of minority shareholders' rights Evidence from African countries

Purpose This paper aims to examine how country-level corporate governance structures influence the level of protection of minority shareholders' rights in the context of Africa. Design/methodology/approach Data are collected from the world competitiveness report for the period 2010-2015. To examine the validity of the study's hypotheses empirically, the authors use ordinary least squares with correlated panel-corrected standards error (PCSE). Findings This paper offers additional empirical evidence on the level of protection of minority shareholders' rights in Africa. It highlights that country-level corporate governance structures such as efficacy of corporate boards, strength of investor confidence, regulations of securities exchanges and the operation of the Big 4 accounting firms have significant positive impacts on the level of protection of minority shareholders' rights. Research limitations/implications - This paper fails to include all African countries because of non-availability of a report for some African countries. Thus, the findings on the level of protection of minority shareholders' rights in a country are applicable to the countries used in this study. Practical implications - This paper emphasizes on the relevance of country-level corporate governance structures to ensuring a reasonable level of protection of minority shareholders' rights. Originality/value This paper partially fills the gap regarding the absence of an empirical cross-country study on how country-level corporate governance structures influence the level of protection of minority shareholders' rights.