You have no items in your shopping cart.
ABSTRACT
This study was conducted to ascertain the relationship between Agency costs and profitability in listed consumer goods companies in Nigeria. The objectives of this study was to ascertain the relationship between, CEO Compensation, Audit costs, and Employee Remuneration in consumer goods companies in Nigeria. The Population of the study was 21 consumer goods companies quoted in the Nigerian exchange group.The Census sampling technique was used to ascertain the sample size. This Research used the data of 21 listed consumer goods companies in Nigeria ranging from 2019 to 2023, to conduct the research. The Ordinary Least Square regression (OLS) regression analytical tool was used to analyze the data. The findings of this study states that, Chief Executive Officer compensation has a positive and significant relationship with profitability in listed consumer goods companies in Nigeria, Audit costs has a positive and insignificant relationship with profitability in listed consumer goods companies in Nigeria, Employee remuneration has a positive and insignificant relationship with profitability in listed consumer goods companies in Nigeria.The study therefore concludes that Audit costs and Employee remuneration ratio has an insignificant impact on profitability of listed consumer goods companies in Nigeria,while CEO compensation has a significant relationship with profitability. It was recommended that the top management of listed consumer goods companies, should adopt policies that can increase the compensation of CEOs in order to enhance profitability. Top management of listed consumer goods companies, should increase the cost of Audit fees in order to increase their financial reporting credibility which could enhance profitability. Top management of listed consuming goods companies, should adopt strategies that can periodically increase the salaries of employees which could enhance profitability in the long run.
