Board Cognition, Information Processing, and Strategic Governance Quality in Large Nigerian Listed Firms: A Behavioural Governance Perspective

This dissertation investigates board cognition and information processing quality as determinants of strategic governance outcomes in large Nigerian listed firms, drawing on behavioural governance theory. Traditional corporate governance research has focused predominantly on structural attributes of boards such as independence and diversity, treating board members as rational and fully informed actors. Behavioural governance theory challenges this assumption by recognising that cognitive biases, information processing limitations, and social dynamics within the boardroom significantly affect governance quality. Drawing on bounded rationality theory, upper echelons theory, and the board information environment literature, this study develops an original Board Cognition Assessment Framework that captures information quality, strategic discussion depth, cognitive diversity utilisation, and bias awareness as governance quality determinants. The framework is empirically applied through a three-stage methodology: director cognition surveys administered to 180 directors across thirty large listed firms, video and transcript analysis of board strategy discussion excerpts shared under strict confidentiality agreements, and secondary data analysis of governance outcomes measured by strategic decision quality indicators. Structural equation modelling tests the proposed relationships. The study makes a pioneering contribution to the Nigerian corporate governance literature by introducing behavioural governance concepts previously applied primarily in Anglo-American contexts and developing an original measurement framework validated for the Nigerian institutional environment. Findings will assist board chairs, governance advisors, and leadership development practitioners in improving boardroom cognitive governance quality. Keywords: board cognition, behavioural governance, information processing, strategic governance, upper echelons theory.