Impact Assessment of Corporate Governance on Performance Of Selected Listed Companies in Nigeria.

Abstract

The erosion of trust has put pressure on corporations to improve their performance. Due to widespread corporate scandals and failures around the world, there has been a renewed interest in the effect of corporate governance on firm performance. This study investigated the effect of corporate governance dimensions particularly board size and ownership concentration on performance and market share of selected listed companies in Nigeria. The study utilized secondary data for fifteen companies from the Financial Services, Consumer Goods and Industrial Goods Sectors of the Nigerian Stock Exchange for the period of 2014 to 2019. For data analysis, the study adopted the ordinary least multiple regression analysis. The study found that as board size and ownership concentration increase, ROE decreases. However, the study found that, to a significant extent, market share of listed firms in Nigeria increases as both board size and ownership concentration increase. This study concluded that board size and ownership concentration do not have significant effect on return on equity (ROE) of listed firms in Nigeria. Also, it concluded that board size and ownership concentration has significant effect on market share of listed firms in Nigeria. Although without significant effect, the study specifically found that as board size increases, return on equity (ROE) of listed firms in Nigeria decreases and as ownership concentration increases, ROE of listed companies in Nigeria also decreases.The study recommended that the board of the companies should always be of a size relative to the scale of its operation, allow for diversity and formation of necessary board committees in order to improve performance. Also, board of directors should ensure that ownership concentration is not too high even as board of the companies needs to ensure that they continuously subject themselves to ownership diversity and board size appropriateness in order for the business to be profitable and increase market share. Keywords: Board Size, Board Ownership, Corporate Governance, Performance, Nigeria