THE NEXUS BETWEEN CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

Abstract

This study examines the nexus between corporate governance and the financial performance of listed industrial goods companies in Nigeria. The study adopted ex-post facto research design using secondary data derived from the audited financial statement of ten (10) companies from 2012-2021. The study concluded that there is a strong positive correlation between the board structure of listed firms in Nigeria and their financial stability particularly when performance is measured using tobin’s q or return on equity metrics. Board audit committee have the greatest positive effects while board equity interest has a detrimental but minor impact. The study recommended that nation’s producers of industrial goods should set up a review procedure that would support steadily increasing performance, ensuring that the board structure's architecture is flexible enough to withstand the text of time. Companies should build systems to regularly monitor the percentage of the board’s equity interest in relation to the total number of exiting firms share.