Effect of Corporate Governance Mechanisms on Corporate Performance: An Empirical Study of Non-Financial Firms in Nigeria

Abstract

The study examined the influence of corporate governance mechanisms on corporate performance of non-financial firms in Nigeria. Secondary data from published accounts and Nigerian Security Exchange Factbooks were analyzed using panel regression methodology. Independent variables were board size, directors’ shareholding, block holding and leverage while return on assets and return on equity was the dependent variables for the period between 1990 and 2017. Findings suggest that leverage has positive significant correlation with return on assets and return on equity while directors’ shareholding, block holding had inverse relations with dependent variables. However, board size had mixed result with a negative significant influence on return on equity while showing an inverse but insignificant impact on return on assets. The study concludes that the selected independent indicators have more influence on return on equity than return on assets. Thus, return on equity performs better than return on assets for non-financial firms in Nigeria

 

Keywords: Corporate Governance Mechanisms, Corporate performance, Nigerian listed firms


Article Review Status: Published

Pages: 1-14 (Download PDF)

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