Corporate Governance and Financial Performance of Listed Consumer and Industrial Goods Firms in Nigeria: Evidence from 2020–2024
Keywords:
Keywords: corporate governance, financial performance, listed firms, Nigeria, system GMMAbstract
This study examines the association between corporate governance and the financial performance of 26 consumer and industrial goods companies listed on the Nigerian Exchange Group over 2020–2024. Financial performance is measured by earnings per share (EPS), net profit margin (NPM), and return on assets (ROA), return on equity (ROE), and return on investment (ROI). Governance measures are board size, board composition, board independence, board gender diversity, board-meeting frequency, and audit committee size; firm age, firm size, leverage, and sales growth are included as controls. In the reported estimates, audit committee size is positively associated with EPS and NPM; board composition with NPM, ROA, and ROI; board independence with EPS and NPM; and board-meeting frequency with EPS, NPM, ROE, and ROI. Board size and gender diversity are not statistically significant in any reported performance equation. Firm size is positively associated with EPS and negatively associated with ROE; firm age is positively associated with NPM and ROI; leverage and sales growth are negatively associated with ROA. These results are outcome-specific and do not supports a blanket claim that every governance mechanism improves performance. Interpretation is qualified because the manuscript does not report key GMM specification diagnostics, and the difference between the descriptive and estimation samples is not explained. Policy implications therefore emphasize transparent board processes, competent oversight, and stronger reporting of panel-estimation diagnostics rather than uniform board-size prescriptions.
References
1. Aduwo, O. O. (2023). Corporate governance and performance of listed multinational companies in Nigeria. Fnoye Journal of Accounting and Managements, 6(1), 151–172.
2. Ahmed, E., & Hamdan, A. (2015). The impact of corporate governance on firm performance: Evidence from Bahrain Stock Exchange. European Journal of Business and Innovation Research, 3(5), 25–48.
3. Ahmed, E. R., Alabdullah, T. T. Y., Thottoli, M. M., & Maryanti, E. (2020). Does corporate governance predict firm profitability? An empirical study in Oman. The International Journal of Accounting and Business Society, 28(1), 127–143.
4. Akinleye, G. T., Olanrewaju, M. O., & Fajuyigbe, B. S. (2019). Corporate governance and financial performance: An empirical analysis of selected multinational firms in Nigeria. Problems and Perspectives in Management, 17(1), 11–18.
5. Arowele, M. A. A. (2022). Impact of corporate governance on the financial performance of listed manufacturing firms in Nigeria. Bingham University Journal of Accounting and Business, 322–335.
6. Chowdhury, M. M. (2023). Corporate governance and bank performance during COVID-19: Evidence from Bangladesh. Journal of Asian Finance, Economics and Business, 10(2), 321–331.
7. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
8. Mishra, A. K., Jain, S., & Manogna, R. L. (2021). Does corporate governance characteristics influence firm performance in India? Empirical evidence using dynamic panel data analysis. International Journal of Disclosure and Governance, 18(1), 71–82.
9. Okoye, U., Olokoyo, F., Okoh, J. I., Ezeji, F., & Uzohue, R. (2020). Effect of corporate governance on the financial performance of commercial banks in Nigeria. Banks and Bank Systems, 15(3), 55–69.
10. Olayiwola, K. T. (2018). The effect of corporate governance on financial performance of listed companies in Nigeria. European Journal of Accounting, Auditing and Finance Research, 6(9), 85–98.
11. Ugwu, J. N., Ebe, E. C., Ezuwore, C. N., Obiekwe, C. J., Orjiakor, I. P., & Oganezi, B. U. (2021). Effect of corporate governance on financial performance of manufacturing firms in Nigeria. Social State Technology, 64(2), 18373–18401.
12. Yinka, S. A., Babatunde, B. O., & Okezie, F. O. I. (2014). Corporate governance practices and firms’ performance of selected manufacturing companies in Lagos, Nigeria. International Journal of Economics, Finance and Management Sciences, 2(5), 285.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Author(s)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Articles published in the Journal of Advanced Multidisciplinary Studies (JAMS) are licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0), unless otherwise stated. Authors retain copyright of their work and grant JAMS the right of first publication.
