Relationship between Corporate Governance and Companies Performance in Nigeria

Abstract

A company's corporate governance structure has a significant impact on how responsive it is to outside forces affecting its performance. Higher performance has been observed in companies with sound governance. Despite the fact that corporate governance has many facets, this study examined how board composition and size affected three performance indicators: ROA, Tobin's Q, and Growth in Sales of non-financial listed companies on the Nigerian Stock Exchange. The study was conducted using annual data from 2014 to 2023 and according to the panel data methodology framework. Despite the somewhat ambiguous outcomes on these performance metrics, Nigerian companies are urged to keep their boards smaller and the legally mandated makeup of their boards in place for optimal performance.