CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE (A CASE STUDY OF NIGERIA HEALTHCARE SECTOR)

ABSTRACT

Corporate governance is a key driver of financial performance, influencing transparency, accountability, and risk management within organisations. This study examines the impact of corporate governance mechanisms—board independence, transparency and disclosure, stakeholder engagement, and risk management—on the financial performance of healthcare companies in Nigeria. Using an ex-post facto research design, secondary data from listed healthcare firms were analyzed over a five-year period (2019–2023). The study finds that transparency and disclosure significantly enhance financial performance, while stakeholder engagement and risk management have a negative effect. Board independence, however, does not exhibit a significant impact. These findings suggest that while transparency strengthens investor confidence and operational efficiency, excessive risk aversion and stakeholder engagement complexities may hinder financial success. The study recommends that healthcare firms balance risk management practices, enhance transparency, and adopt strategic stakeholder engagement models to optimize financial performance. The findings provide valuable insights for policymakers, healthcare administrators, and investors seeking to improve governance frameworks in the sector.