CORPORATE GOVERNANCE AND FIRM’S PERFORMANCEINTHENIGERIAN INDUSTRIAL GOODS SECTOR.

Abstract

Since business confidence typically loses each time a corporate entity collapses, corporate governance has recently taken substantial relevance as a true strategy for guaranteeing corporate survival. As a result of the Enron, Adelphia, and WorldCom scandals, governance issues have received more focus globally in an ef ort to avoid a repeat. This study's goal was to assess how corporate governance affected firms' performance in the Nigerian industrial goods sector. The anticipated population size for the panel data research design includes all 17chosencompanies in the Nigerian Industrial Goods sector, and a sample of 15 randomly chosen companies from this sector was obtained using the simple random sampling technique. This study's dependent variable was firm performance, while its independent factors included board independence, board meeting attendance, board size, and board gender diversity (Return on Assets). To verify the research hypotheses, the data was put via a linear regression analysis. It was decided to set the likelihood level at 5%. The results of the linear regression analysis thus show that Board independence have a significant relationship with firms' performance in the Nigerian industrial goods sector with a significance level of 0.049 (p0.05), Board meetings do not have a significant relationship with firms' performance in the Nigerian industrial goodssector with a significance level of 0.176 (p>0.05), and board size have a significant relationship with firms' performance in the Nigerian industrial goods sector with a significance level of 0.009(p<0.05), With a significance level of 0.000 (p0.05), board gender diversity has a substantial link with firms' performance in the Nigerian industrial products sector. However, this study suggests that there should be more female directors on corporate boards. Additionally, the study suggests that businesses establish a model corporate governance structure and ensure that it is carefully adhered to.