CORPORATE GOVERNANCE MECHANISMS AND FIRM PERFORMANCE OF QUOTED MANUFACTURING COMPANIES IN NIGERIA

This research examined the connection between corporate governance practices and the performance of manufacturing companies listed in Nigeria. The study specifically focused on the 46 manufacturing firms that were listed on the Nigerian Exchange Group (NGX) as of December 31, 2023, and were chosen for the analysis due to the availability of complete financial information in their annual reports. The selection was conducted using a purposive sampling method, which involved intentionally choosing firms that possessed the necessary data to answer the research questions. Data were collected from the audited annual reports of the selected firms over a seven-year timeframe, spanning from 2017 to 2023. A mix of descriptive, correlation, and diagnostic statistics was utilized to analyze the data, aiding in the understanding of trends and relationships among the variables. Hypotheses formulated for the research were tested using panel regression analysis, with EViews 9.0 serving as the statistical tool. The results provided several significant insights showing that board size, board independence, board gender diversity all had a positive yet statistically insignificant effect on firm performance while audit committee was found to have a negative but statistically insignificant effect on performance, suggesting that the number of audit committee members does not significantly impact financial results. It suggested that board size should correspond to the company’s size, implying that boards should be neither too small nor excessively large but rather suitably structured to effectively oversee the company's operations. Furthermore, it recommended that independent directors with expertise in management, finance, and accounting be involved in the preparation of financial statements to ensure accuracy and support better decision-making.