Internal Governance Mechanisms and Value Creation of the Company: A Study of Large and Small and Medium Enterprises in Cameroon

François-Xavier Mayegle, Berlin Sidoine Ngah

Abstract


This study seeks to highlight the relationship between the various control and incentives measures established within companies and the wealth created by them in the Cameroonian context. We overall studied using quantitative method, and then separated these measures into small and medium enterprises, and large enterprises through a sample size of 72 structures and four assumptions. Results reflect a significant relationship betweenthe presence of independent directors on the Board of Directors and the overall business value of companies. Asignificant relationship was also highlighted between concentrated structures and profitability. Therefore this concludes to a positive influence between financial incentives granted to executives and the shareholder value there of. This thus validates three of the four hypotheses stated earlier.


Full Text: PDF DOI: 10.5539/ijbm.v9n7p100

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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