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This study aims to investigate the immediate impact of a newly released code of governance on the financial performance of Nigerian companies. Tests are carried out to determine whether firms that comply more with the code experience better performance.

The governance change of Nigerian listed firms after the newly released code is classified into ex ante good governance change or ex ante bad governance change; the differences in performance between the good governance change firms and bad governance change firms are then compared. Since firms in any year can change more than one governance indicator, an index of aggregate governance change is computed and the performance of firms from two extreme governance rankings is compared.

It is found that in the immediate period after the release of the code, Nigerian firms reorganised their governance mechanism, and this sometimes involved substitution among mechanisms. However, the performance increase accrued to any firm with reorganisation towards a good mechanism could have been eroded when the same firm instituted a change towards another mechanism that matches the definition of bad change. This therefore makes an attempt to differentiate performance based on governance change (pre‐ and post‐new code) difficult and insignificant.

This study contributes to the scarce literature on corporate governance and firm performance in developing countries. Specifically, it can be regarded as the first study to test the immediate impact of a new code of governance on Nigerian firms. Equally, the adopted methodology makes it the first study to compute and test an aggregate index of governance change for Nigeria.

Following the scarcity of studies in the developing countries, particularly Africa, on corporate social responsibility (CSR) and sustainable community development, this paper intends to examine the case of a major cement company, WAPCO plc, and its host communities.

A total of 15 CSR factors covering the three elements of sustainable development (economic, social and environment) were adopted, and with data extracted from the company's annual reports the contributions of WAPCO to sustainable development in the host communities in Nigeria were analysed.

Analysis of 15 CSR factors shows that WAPCO has gone beyond assistance and community development per se to sustainable development in the host communities; its recent inclusion as a member of Lafarge SA may have attributed to this. However, the position of WAPCO seems not to be clear in the area of social and environmental reporting, and codes of conduct on bribery and corruption. Some areas such as health seem not to be given priority in the WAPCO's CSR expenditure. Further, WAPCO's CSR activities are observed to be directly related with its turnover; however, CSR as a ratio of turnover is less than 0.5 per cent throughout the study period.

The limitation of this study lies in the fact that although the firm used as a case study accounted for over half of the output in the industry, this study is based on a single firm in the cement manufacturing industry. Besides, data extracted from the company's annual reports are taken as given. Thus, caution needs to be exercised in the interpretation and generalisation of the results and conclusions/recommendations.

WAPCO and polluting firms in general should devote more resources to CSR activities. Besides, there is the need to design a clear policy/strategy and enforcement mechanism in the area of social and environmental reporting, and codes of conduct on bribery and corruption. The area of health needs to be given priority in a firm's CSR expenditure and regulations.

The study adopts both theoretical and empirical approaches to analyse the contributions of a firm (which generates negative externalities) to sustainable development of its host communities so as to forestall crisis between the two stakeholders. To the authors' knowledge, no previous study in a developing continent such as Africa has taken such an approach to analyse the case of a firm in the cement industry.

Given the inconclusive evidence in the literature on the impact of Bilateral Investment Treaties (BITs) on Foreign Direct Investment (FDI) flows, as well as dearth of literature on this subject matter as regards West Africa and the European Union (EU), the purpose of this paper is to investigate the extent to which BITs and preferential trade and investment agreements (PTIAs) triggered foreign investment flows particularly between the Economic Community of West African States (ECOWAS) countries and the EU.

Trend analysis was used to trace the link between FDI and BITs, while panel regression models were used to investigate the impact of BITs on FDI during 1980‐2010.

Econometric results indicate that, as in most previous studies, BITs have strong positive impact on FDI in West Africa, with this impact significant at a higher level (1 per cent) for FDI flow than stock (5 per cent). The impact of BITs on FDI is significant even with the state of internal factors (such as capital account liberalisation, trade openness, high inflation rate and poor governance) in West African countries. The findings suggest that in the absence of BITs, West African countries would have suffered adversely from poor FDI inflows given their poor macroeconomic stability and governance. On the contrary, the PTIAs did not have significant impact on both FDI flows and stock. The results also show that FDI inflow to West Africa is both market and resources seeking.

Sensitivity analysis may not have been sufficient. For instance, not tested was the impact of the signalling effect of BIT, as well as other vertical FDI such as those from the USA.

The implication of the findings is that West Africa countries need to design policies and programmes that will enable them to maximise the technological spill‐over from FDI in order not to be perpetual suppliers of primary products and purchasers of manufactured goods. Further, they have to maintain macroeconomic stability and good governance. They need to understand the type of provisions in the BITs that constituent states signed and compare with the provisions of the PTIAs, with a view to discerning what is responsible for the superior response of FDI to BITs.

Given the absence of literature on the impact of BITs on FDI flows between West Africa and EU, it becomes imperative to investigate this issue with a view to motivating the investment component of the EPA, as investment is one of the Singapore issues that were removed from WTO's Doha Round.

Owing to the dearth of studies in Africa on corporate social responsibility (CSR) and community satisfaction with them, this study aims to examine the case of WAPCO and its host communities.

Through the use of a simple structured questionnaire, the authors collected data from key respondents including community development leaders, community chiefs, market women leaders, youth development leaders, religious leaders and other opinion leaders in and around the locations of WAPCO's Plants. The authors also extract some useful information from the company's annual reports. In analyzing the data, both a descriptive approach and some measures of linear association are adopted.

The authors found that, although the proportion of resources committed to CSR is small, CSR expenditure rises with the firm's sales. Further, the host community displays a great knowledge of the adverse effects of the company's operation; however, reactions are minimal. This is attributed to the company's elaborate governance structure and CSR practices as well as to a high level of host community satisfaction with them. However, there is the budding predisposition for the company's activities to generate conflict with workers from the community and the community as a whole in the future.

The study is limited by the facts that some data extracted from the company's annual reports are taken as given, and by an inability to carry out a large‐scale survey of opinions as planned due to unwillingness of the community individual members to cooperate. Besides, the study is based on a single firm in the manufacturing industry. Thus, caution should be exercised in the interpretation and generalization of these results.

The company's CSR is rated as satisfactory; nonetheless, involving the community more in the design of its CSR programs is imperative. The idea of institutionalization of collective bargaining procedures in CSR activities is relevant not just to WAPCO, but also to other companies, especially those with much environmental impact, like the oil companies. It is also suggested that a grassroots approach be taken in studying the CSR profile of companies, especially in a developing economy, like Nigeria; in order to serve as early warning signs of conflicts.

The study adopts both theoretical and empirical approaches to associate a company's CSR practice with the immediate community needs or satisfaction so as to forestall the replication of the kind of crisis observed in the Nigerian oil industry. To one's knowledge, no prior study in Africa has taken such a holistic and balanced approach.