SOURCE:

Faculty: Management Sciences
Department: Accountancy

CONTRIBUTORS:

Akhalumeh, P. B.
Ekwueme, C. M.

ABSTRACT:

This study sought to examine the effects of corporate governance structures on the financial performance of selected quoted firms in Nigeria. This study used non-banking firms in Nigeria that whose stocks were consistently traded (with 2005 as the base year) on the Nigerian Stock Exchange between 2005 and 2014. A total of seventy-two (72) (out of a population of 122) formed the sample of this study; the researcher employed panel data multiple regression analysis to empirically examine the effect of selected firms’ specific corporate governance attributes on firms’ earnings per share (EPS) and EPS_growth respectively. The study used descriptive statistics, correlation analysis and panel data regression analysis. In drawing our conclusions, the researcher neglected the EPS_growth regression results due to its poor statistical significance and erratic behaviour. The major findings of the study include: that board size negatively and insignificantly impacts performance of the sampled firms; board independence negatively and significantly impacts EPS; that board gender diversity results indicate a positive and significant impact on EPS and audit committee independence has negative but insignificant impact on EPS of firms in the non-financial service sectors in Nigeria. The study therefore recommends that better earnings targets and cost efficiency be given top priority in the practice of good corporate governance in Nigeria, since our findings indicate that large board and the use of outside directors increase cost rather than improve earnings bottom-lines.