CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

Abstract

The prevalence of corporate scandals in Nigeria occasioned by Corporate Governance (CG) failure continued to raise questions about the effectiveness of CG designs. This study examined the impact of Corporate Governance (CG) on the Financial Performance (FP) of selected Non-Financial Firms (NFFs) in Nigeria. Panel design wherein secondary data sourced from published annual report and accounts of listed NFFs, for a ten (10) year period, was employed for this study. Thirty-seven (37) firms were selected as sample size from a total population of 111 listed NFFs using purposive sampling technique. Panel least square regression was used to determine the relationship between BAM and ROE and to examine the relationship between DM and TQ. The results of panel regression showed that BAM (ρ = 0.0011) had significant influence on ROE, while DM (ρ = 0.7625) had insignificant relationship with TQ. The study concludes that factors other than strict compliance with contents of code of corporate governance affect financial performance of listed NFFs in Nigeria.