Corporate Governance and Performance of Listed-Nigerian Non-Financial Firms.

Abstract

Recent developments, including the global financial crisis, prominent corporate scandals, and heightened public concern regarding board performance and executive compensation, have significantly increased attention toward corporate governance. This study examined the relationship between corporate governance and the financial performance of forty-five (45) listed non-financial companies on the Nigeria Exchange Limited (NGX) from 2012 to 2023. The data for the study was mined from the annual reports of the selected firms. The System Generalized Method of Moments (SGMM), which is particularly suited for analysing dynamic panel data, was employed for the data analysis. The findings showed that board size and independence do not significantly affect return on assets. Furthermore, board size has a significant negative effect on enterprise value, while board independence has a significant positive effect on enterprise value. The board ownership exhibited a significant negative impact on both financial performance proxies.  In contrast, block ownership demonstrates a significant positive influence on return on assets and enterprise value. The study recommends that the Nigerian government enhance corporate governance regulations to promote block ownership by ensuring transparency, accountability, and protection of shareholder rights. This will encourage major shareholders to prioritise the company's best interests and those of minority shareholders.