CORPORATE GOVERNANCE AND PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA

ABSTRACT

This study examined corporate governance on performance in quoted manufacturing firms. The data of 30 manufacturing firms in the Nigeria Exchange Group ranging from 2019 to 2023 was used during the course of this study. The OLS regression analytical tool was used to analyze the data. The results showed that, shareholder engagement has a positive and significant relationship with financial performance in quoted manufacturing firms in Nigeria, also results showed that, remuneration packages have a positive and significant relationship with financial performance in quoted manufacturing firms in Nigeria, in addition, results indicated that CEO duality has a negative and insignificant relationship with financial performance in quoted manufacturing firms in Nigeria. Finally, results showed that board committee expertise has a positive and insignificant relationship with financial performance.  It was concluded that shareholder relationship and Remuneration packages has an insignificant relationship with financial performance, while, CEO duality and Board committee expertise has an insignificant relationship with financial performance. The study recommends that the management of quoted manufacturing firms should promote a strong engagement between Shareholders, Directors and other stakeholders of the company. Also, shareholders should implement policies that will enhance the remuneration packages of Directors and, which could motivate Directors to act as good agents, thereby leading to the increase in financial performance in the long run. Top management of quoted deposit money banks should separate the role of Chief Executive officer and Chairman of the board from one single person. Finally, more people with specific expertise and competence should be appointed to the board.