DOES DIRECTOR REMUNERATION INFLUENCE GOING CONCERN IN SELECTED MANUFACTURING FIRMS IN NIGERIA

The Nigerian manufacturing sector is a critical driver of economic growth, employment, and GDP contribution. However, several high-profile corporate failures have highlighted concerns about financial instability and threats to the going concern of listed firms .It is against this backdrop that the inspiration to this study arose. Therefore, this study examines the impact of directors’ remuneration on the going concern of manufacturing firms listed on the Nigerian Exchange Group. Using an ex-post facto research design, secondary data were collected from the audited annual reports of 56 listed manufacturing firms spanning 2015 to 2024. Directors’ remuneration was proxies by the natural logarithm of total directors’ pay, while going concern was measured using the Going Concern Ratio (GCR). Multiple linear regression analysis using the fixed-effect model revealed that directors’ remuneration has a significant positive effect on going concern (β = 249,704; p = 0.010 < 0.05). This finding indicates that appropriate remuneration packages can enhance directors’ commitment to maintaining firm sustainability, particularly in financially stable firms. Based on these results, the study recommends that manufacturing firms should implement performance-linked remuneration structures that balance the interests of directors and other stakeholders, ensuring firm continuity without compromising shareholder value or operational efficiency.