CORPORATE GOVERNANCE AND FIRM PERFORMANCE OF QUOTED CONSUMER GOODS COMPANIES IN NIGERIA

ABSTRACT

This study examined corporate governance and firm performance of quoted consumer goods companies in Nigeria. The study covered all the quoted consumer goods companies listed on the Nigeria Exchange Group for the period of ten years from 2013 to 2022 and data were obtained from their annual financial reports. The corporate governance mechanisms of Board Size (BSZ), Board Independence (BIND), Chief Executive Officer's Characteristics (CEO), External Auditor's Independence (AUDI), Audit Committee Existence (AUCEX), and Shareholders' Involvement (SHINV) were used as independent variables. Firm performance of quoted consumer goods companies was measured by Return on Assets (ROA) representing the dependent variable. The study utilised descriptive statistics, O.L.S. Regression model, and ARMA model to analyse the data collected. The study finds that board independence and external auditor's independence have an insignificant positive relationship with firm performance. On the other hand, CEO characteristics and audit committee existence had a positive relationship with firm performance. Board size had a significant negative relationship with firm performance while shareholders' involvement had a significant positive relationship with firm performance. The study recommends that companies should maintain a sufficient number of directors for its size and undertakings. Also, the study recommends that there should be more independent non-executive directors on the board and that companies should ensure independence of external auditors. Furthermore, the study recommends that companies should ensure that CEOs are well educated and that audit committees remain functional.