CORPORATE GOVERNANCE AND FIRM PERFORMANCE IN NIGERIA

Abstract

This study examines the relationship between corporate governance (governance scores) based on data set provided by institutional investors (shareholders) services (IIS) and three firm performance indicators: return on equity (ROE), Net profit margin (NPM) and Dividend Yield (DY) of ten quoted companies in Nigeria. The study used the r and t –test at 5% level of significance in relation to time series and cross sectional data on the variables. The result shows a positive and significant relationship between return on equity (ROE) and corporate governance, Net Profit margin (NPM) and corporate governance, dividend yield (DY) and corporate governance. This paper advocate that better governed firms have higher divided yields, net profit margin and return on equity than poorly governed firms. However, minimum amount of information in line with the requirement on corporate governance should be provided by companies in Nigeria.