Transfer of corporate governance practices into weak emerging market environments by foreign institutional investors

We advance the practice transfer theorising of corporate governance (CG) by developing a framework that uncovers how foreign institutional investors (FIIs) improve on CG practices firms in weak environments. Using hand-collected data for 85 listed Nigerian covering 2011–2016 period, we show FIIs bypass regulatory environment emerging markets transferring good standards to host countries. Furthermore, FIIs’ ability enhance quality such environments is moderated their home country’s legal system, with from countries strong enforcement having an enhanced However, cultural differences between and negatively moderate this relationship. Our results are robust choice estimation technique various sources endogeneity.