CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE AMONG LISTED CONSUMER AND INDUSTRIAL GOODS COMPANIES IN NIGERIA

Abstract

The study investigates corporate governance and financial performance among consumer and industrial goods companies listed in the Nigerian Exchange Group. The vacillating nature of findings in prior studies may have been due to the choice of financial performance proxy used. The study adopts the longitudinal research design, with a population of thirty five (35), twenty one (21) consumer goods and fourteen (14) industrial goods companies as at 31st December, 2022. The study took a census of the entire firms, however could only access eighteen (18) of the consumer goods companies, making a total of thirty two (32) companies. The data was sourced from the audited annual report of the sampled companies during the period 2017 to 2022. The result random estimation result reveal that, board size and independence exhibit significant impact on ROE with inverse and positive relationship respectively while audit committee size and audit committee independence exhibit inverse insignificant impact with ROE. The joint explanatory power of the models revealed 34.2%. The study concludes that positive signs of the explanatory variables and the explanatory power of 34.2%, one can safely conclude that board and audit committee attributes has the potential to determine an organisation bottom lines such as financial performance.