Effect of Corporate Governance Characteristics on the Performance of Selected Listed Firms In Nigeria

SOURCE:

Faculty: Management Sciences
Department: Accountancy

CONTRIBUTORS:

Imade, O. G.
Okoye, E. I.
Udeh, F.

ABSTRACT:

This study examined the effect of corporate governance characteristics on the performance of selected firms listed on the Nigerian Stock Exchange. The study focused on corporate governance characteristic variables (board gender diversity, non-executive director’s composition, board chairman shares ownership and CEO shares ownership), and performance measure (return on assets)of listed firms on the Nigerian Stock Exchange. The theoretical framework of the study is anchored on the stewardship, information and agency theories. The study used the ex-post factor search design and secondary datasets were obtained from the Annual Reports and Accounts of Seventy-two (72) selected listed firms for the period 2006-2016. The data obtained were analyzed using the Ordinary Least Square technique with its Best Linear Unbiased Estimate (BLUE) Property and the analysis was performed via STATA 13.0. From the analysis of data, the study found that board gender diversity has significant effect on return on asset (ROA). Contrarily, the study found that non-executive director’s composition, board chairman shares ownership and CEO shares ownership, have no significant effect on the performance of firms listed on the Nigerian Stock Exchange. In conclusion, it is argued that the effect of corporate governance characteristics (Board gender diversity), on performance measure (ROA) on listed firms in the Nigerian Stock Exchange, has substantial effect on corporate performance. Based on the findings of the study, it was recommended among others, that listed firms in Nigeria should pay attention to gender diversity in the composition of their board and also focus on the quality and integrity of members of the board.