---

CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF LISTED CONGLOMERATE FIRMS IN NIGERIA

Olayemi, Adedayo Ezekiel

---

Download PDF

---

Abstract

This study sought to investigate the impact of corporate governance on the financial performance of listed conglomerate companies in Nigeria. Specifically, the study examined the impact of board independence, board size, and audit committee size on the financial performance of listed conglomerate companies in Nigeria. The study adopted an expo factor research design and considered secondary data covering a period of 10 years (2013 to 2022). The study was only conducted on 5 listed conglomerate firms in Nigeria from 2013 to 2022. Data analysis methods included both descriptive and inferential analyses; included in the study's descriptive analysis were mean, standard deviation, minimum, and maximum analyses. Furthermore, correlation analysis, panel estimates with fixed effect and random effect, and post-estimation tests including the Hausman test, Wald test of heterogeneity, Wooldridge autocorrelation test, and Pesaran test of cross-sectional dependency were all used as inferential methods. From the analysis conducted, it was revealed that BOS has a negative insignificant impact on TOB to the tune of -0.06267 (p=0.092>0.05, BOI has a negative significant impact on TOB to the tune of -0.02936 (p=0.001<0.05) and ACS has a positive insignificant impact on TOB to the tune of 0.1725(p=0.382>0.05). Therefore, it is concluded that a statistical relationship exists between corporate governance and the financial performance of conglomerate firms in Nigeria. Correspondingly, it was recommended that to improve and maximize the firm’s value and shareholders’ wealth, it would not be out of place to lessen the current proportion of independent directors on the board, thereby, minimizing agency problems in firms. 

Keywords:  Board Independence, Board Size, Audit Committee, Financial Performance