Corporate Governance Mechanism and Financial Performance of Listed Non-Financial Firms in Nigeria.

The study examined the corporate governance mechanisms and financial
performance of listed non-financial firms in Nigeria. Board size, board
independence, CEO duality, and audit committee independence served as
indicators of corporate governance mechanisms, and financial performance was
measured by return on assets (ROA). A sample of five listed non-financial firms
listed on the Nigerian Exchange Group (NGX) was selected. Secondary data were
obtained from the annual reports of the selected firms, and the ex-post facto
research design was adopted. The study employed multiple linear regressions. The
findings revealed that board size and audit committee independence had a positive
and significant impact on the financial performance (return on assets) of quoted
non-financial firms in Nigeria. The findings also reveal that board independence
has a negative and significant impact on the financial performance of quoted nonfinancial firms in Nigeria, while CEO duality has a negative and insignificant
impact on the financial performance of quoted non-financial firms in Nigeria. The
study recommended, amongst others, that policymakers and regulatory bodies in
Nigeria should consider revising corporate governance guidelines to encourage
listing non-financial firms to maintain larger boards, as long as they can effectively
manage the board size and dynamics