ABSTRACT
This chapter reviews the role of the regulatory framework of institutions in promoting board effectiveness in Nigeria, relative to the United Kingdom and the United States. It identifies the role of regulation by reference to the main streams of economics of institutions, to ascertain the effective ways that informal institutions, local practice and customs can influence the development of formal institutions and rules. The chapter evaluates the extent to which institutional make-up and incentives such as the enforcement processes of governance rules and sanctions can impact board effectiveness. The comparison showed that, while some aspects of corporate governance regulation may be considered to be ‘world best practices’, the successful implementation of these practices across the globe is largely dependent on the extent to which peculiar local circumstances permit. Hence, the chapter argues that informal institutional environments should be considered in designing a framework for promoting board effectiveness.
