How Use of knowledge, Skills and Cognition En hance Board Performance in Nigerian market: A SEM-Approach

Abstract

This research aims to take steps towards explaining behavioral principle-based board process as 
factors for effective board performance. Dominant rule-based board structure approach could 
not transform effective corporate functioning, thus inconclusive. Based on a survey perception 
of 154 respondents from Nigerian capital market participants, the study employs confirmatory 
factor analysis (CFA) in a structural equation modeling (SEM) approach. Other studies used 
EFA and in developed nations. Replicates and builds upon board process constructs - cognitive 
conflict, effort norms, use of knowledge and skills, and groupthink. The study concludes that 
the items are valid measures of the latent constructs and significantly relate to board perform
ance. The paper links corporate governance debates to broader behavioral choices in agency 
perspective and employs CFA and SEM as alternative approach for the measurement and struc
tural models, in place of the usual exploratory factor analysis (EFA).