Corporate Governance and the Performance of Quoted Industrial Goods Companies in Nigeria (2012 to 2021)

Abstract

This study examines the corporate Governance and the Performance of Quoted Industrial Goods Companies in Nigeria from 2012 -2021 using data obtained from the Nigerian Stock Exchange (NSE). The variables for the study are Board Size (BCIZ), Board Gender Diversity (BGD) and Board Independence (BIN) were used as Independent variables and Return on Assets (ROA) were used as the dependent variables. The findings of the study revealed that Board Size (BSIZ) has a positive and significant effect on return on asset (ROA) of industrial goods firms in Nigeria. Board gender Diversity (BGD) has a negative but insignificant effect on return on asset (ROA) of industrial goods firms in Nigeria. Board independence (BIN) has a positive but significant effect on return on asset (ROA) of industrial goods firms in Nigeria. Based on these results the study concludes that what matters most in the industrial goods firms in Nigeria is the size of the board as more board members will bring diverse ideas which if well harnessed will always lead to higher returns on assets. The study concluded that Boards of various firms in the industry should increase in size as this has shown to boost the performance of the firms. Female board members should be well utilized so as to tap from their moderate nature and improve on the performance of industrial goods firms. Measures should be put in place to prevent the dominance of the executive board members so that the independent board members can freely make good proposals that can be implemented for the success of the firms.