American Journal of Business and Society
Articles Information
American Journal of Business and Society, Vol.4, No.3, Sep. 2019, Pub. Date: Oct. 23, 2019
Corporate Governance and Financial Performance of Listed Non-financial Companies in Nigeria
Pages: 80-96 Views: 227 Downloads: 71
Authors
[01] Mohammed Ibrahim, Department of Accounting, Faculty of Arts and Social Sciences, Gombe State University, Gombe, Nigeria.
[02] Buhari Baba Abdullahi, Department of Accounting, Faculty of Arts and Social Sciences, Gombe State University, Gombe, Nigeria.
Abstract
This study examines the impact of corporate governance on financial performance of listed non-financial services companies in Nigeria. The study used ex-post factor research design and utilized secondary data collected from the annual report and accounts of twenty three (23) sampled listed non-financial companies for a period of 10 years (2008-2017). The sample of the companies was arrived at using purposive sampling technique. The data were analyzed using descriptive statistics, correlation and regression analysis (GLS Fixed Effect) with the aid of Stata 14.0. Robustness tests, namely multicollinearity, heteroscedasticity, normality of residuals, Hausman specification and F-Test were conducted to validate the results. The findings of the study revealed that CG has positive and insignificant impact on financial performance. The study concludes that financial performance of companies can be positively affected by CG, which means; better governed firms have higher financial performance than poor governed firms. The study therefore, recommends that in respect to the decisions on the size of the board and the proportion of NED, SEC should emphasized on the quality, effectiveness and efficiency of the members not the number of the members on the board and they should require additional disclosure of financial or personal ties between directors (or the organizations they work for) and the company or its Chief Executive Office (CEO).
Keywords
Corporate Governance, Board Size, Board Independence, Board Gender Diversity, Financial Performance, GLS Fixed Effect, Non-Financial Services, Nigeria
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