Corporate Governance and Performance of Manufacturing Companies in Nigeria

Sunmonu Sadiat O, Odeyale Adeolu J & Belau Kazeem S
Aradel Energy Limited, Nigeria
*Corresponding Author: Sunmonu Sadiat O
DOI – http://doi.org/10.37502/IJSMR.2024.71205

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Abstract

Poor corporate governance entrenches poor mishandling of earnings, resulting in bad corporate image and financial capital its importance. Based on this factor this study examines into the effect of corporate governance on performance of manufacturing companies in Nigeria. The study used the panel data that was sourced within 2017 to 2022. The simple and convenience sampling technique was employed in selecting seven manufacturing companies. The panel regression analysis reveals that board Independence and Board Gender Diversity has positive significant effect on Return on Risk-Weighted Asset, while board Size has positive insignificant effect on Return on Risk-Weighted Asset. It is therefore recommended that Organizations should prioritize enhancing board independence by including more non-executive directors with relevant expertise to strengthen accountability and decision-making. Efforts should also be made to improve board gender diversity by promoting equal opportunities and inclusive policies that attract skilled female professionals to board positions. While board size showed an insignificant effect, firms should maintain an optimal board size tailored to their operational complexity to avoid inefficiencies.

Keywords: Board Size, Board Gender Diversity, Board Independence and Return on Risk-Weighted

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