Corporate Governance Dimension and Return on Assets: Evidence from the Nigerian Health Care Sector

Abstract

The healthcare sector in Nigeria continues to be a hub of innovation, drawing global attention due to its complex and inventive approach in delivering life-improving products and services that cater to diverse healthcare needs. However, the integration of these innovations demands substantial investments, a venture made viable only through effective corporate governance strategies. This research delves into the impact of corporate governance on the returns generated from assets within several healthcare companies listed on the Nigerian Stock Exchange (NSE). Focusing on ten healthcare companies listed on the NSE, this study employs an ex-post facto research methodology. Secondary data sourced from various references are subjected to analysis using the generalized least squares (GLS) regression method. The outcomes of the analysis distinctly demonstrate that the facets of corporate governance exert a palpable influence on the asset returns of the chosen healthcare enterprises. The findings underscore the pivotal role of corporate governance in influencing companies' asset returns. In light of these outcomes, it is deduced that a substantial correlation exists between corporate governance practices and companies' asset returns. Consequently, it is strongly suggested that healthcare enterprises diligently adhere to the principles of corporate governance to augment their profitability in both immediate and enduring contexts. Keywords: Board gender diversity, Board independence, Board size, corporate governance, External audit quality, Return on assets.