IMPACT OF CORPORATE GOVERNANCE ON FIRM PRODUCTIVITY IN NIGERIA

ABSTRACT

This study seeks to evaluate the impact of Corporate Governance on firm productivity of listed manufacturing firms on the floor of the Nigerian Exchange Group (NGX) from the period of 2013 to 2022. The ordinary least square (OLS) estimation technique was employed on the secondary data extracted from the annual financial report of forty (40) firms to determine whether or not a relationship exists between corporate governance and firm productivity. Return on Asset was used as a proxy for corporate governance, while board size, board independence, and firm ownership were employed as controls. A cross-sectional design approach was employed due to the attributes of the time series data. The study observed that a positive and significant relationship exists between Board size and firm productivity, a positive but non-significant relationship exists between board independence and firm productivity, and a negative and statistically significant relationship exists between firm ownership and firm productivity all proxied by return on asset. The study therefore arrived at the conclusion that the drive for corporate governance lies in increasing the board size and the composition of independent board of directors to foster firm productivity.