Agency Theory Extensions for Emerging Market Governance: A Nigerian Evidence-Based Theoretical Contribution

This dissertation develops theoretically grounded extensions of agency theory applicable to the governance conditions prevalent in emerging market economies, using Nigeria as the primary evidence base. Agency theory, the dominant theoretical framework in corporate governance research, was developed to explain principal-agent relationships in dispersed-ownership, market-oriented institutional environments. Its application to emerging market contexts including Nigeria, where ownership is concentrated, institutions are weak, multiple principals coexist, and informal governance mechanisms are significant, has been frequently questioned but rarely addressed through systematic theoretical development. Drawing on original agency theory, the multiple principal-agent literature, institutional economics, and emerging market governance scholarship, this study identifies six theoretically important deviations from classical agency theory assumptions that are systematically present in Nigerian corporate governance environments. These deviations are empirically grounded through analysis of qualitative interview data from one hundred corporate governance actors, quantitative analysis of sixty listed firms over fifteen years, and comparative institutional mapping. The study proposes an Extended Agency Theory for Emerging Markets that incorporates multiple principal conflicts, weak enforcement environments, institutional substitution mechanisms, and informal governance dynamics. The theory is tested using structural equation modelling on the quantitative dataset. Original contributions include the Extended Agency Theory framework, its validated measurement instrument, and twelve specific theoretical propositions generalisable to comparable emerging market contexts. Findings have fundamental implications for governance theory development and practice. Keywords: agency theory, emerging markets, governance theory, Nigeria, theoretical extension.