Corporate Governance (CG) and Financial Performance (FP) of Listed Non-Financial Firms (NFFs) in Nigeria

Abstract

The prevalence of corporate scandals in Nigeria, often attributed to Corporate Governance (CG) failures, continues to raise questions about the effectiveness of CG designs (see previous research for context). This study examined the impact of CG on the Financial Performance (FP) of selected Non-Financial Firms (NFFs) in Nigeria. A panel design was employed, utilising secondary data sourced from published annual reports and accounts of listed NFFs over a 10-year period. Thirty seven (37) firms were selected as the sample size from a total population of 111 listed NFFs, using a purposive sampling technique. Panel least squares regression was used to analyse the data. The results showed that the Board Accountability Mechanism (BAM) ( Ã = 0.0011) had a significant influence on Return on Equity (ROE), whilst the Disclosure Mechanism (DM) ( Ã = 0.7625) had an insignificant relationship with Tobin's Q (TQ). The study concludes that factors other than strict compliance with the code of corporate governance affect the FP of listed NFFs in Nigeria.