Corporate governance mechanisms and performance of quoted non-financial firms in Nigeria

Abstract

In this study, we investigate the impact which some corporate governance attributes have on the financial performance of selected manufacturing firms in Nigeria. The period which the study covers is from 2005 to 2020 of 76 sampled firms from a population of 106 firms in the NXG. The endogeneity test results reveal that three of the variables are endogenous and this necessitates the use of a dynamic model like the generalized method of moments (GMM). The results reveal that board size, board meetings, foreign ownership, institutional ownership and firm size are positively and statistically significant; board gender diversity, board independence, firm age, leverage and loss are negatively and statistically significant while managerial ownership is insignificant. It implies from the results above that sound corporate governance adherence leads to economic prosperities and avoid the risk of liquidation.