IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v16y2026i4p482-510.html

Abnormal managerial discretionary spending and investment efficiency of South African firms: does board governance quality matter?

Author

Listed:
  • Sulaiman Ademola Oreshile

Abstract

This study examines the effect of abnormal managerial discretionary spending (AbMgr_disexp) on investment efficiency (Invest_eff.) and the role of board governance quality (BGQ) as a moderator on the relationship. Utilising least squares dummy variable (LSDV) two-way fixed effect estimator, the analysis covers panel data from non-financial publicly listed firms on the Johannesburg Stock Exchange from 2015-2023. The finding indicates that AbMgr_disexp degrades Invest_eff. while BGQ improves Invest_eff. Additionally, BGQ mitigates the effect of AbMgr_disexp on Invest_eff. Results are robust across alternative measures of AbMgr_disexp and Invest_eff., firm heterogeneous analysis, and endogeneity tests using two-stage least squares (2SLS) and generalised method of moments (GMM) regression estimators. These findings are valuable to investors and policymakers, highlighting the influence of CEOs' decisions such AbMgr_disexp and relevance of strengthening BGQ on investment performance in South Africa and Sub-Saharan Africa (SSA) at large.

Suggested Citation

  • Sulaiman Ademola Oreshile, 2026. "Abnormal managerial discretionary spending and investment efficiency of South African firms: does board governance quality matter?," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 16(4), pages 482-510.
    • Handle: RePEc:ids:afasfa:v:16:y:2026:i:4:p:482-510
    as

    Download full text from publisher

    File URL: https://www.inderscience.com/link.php?id=154705
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:16:y:2026:i:4:p:482-510. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.