Effect of Corporate Governance on the Performance of Quoted Agricultural Companies in Nigeria

Abstract

The study investigated the effect of corporate governance on financial performance of quoted agricultural companies in Nigeria. Longitudinal panel research design was adopted in this study. The researchers employed purposive sampling technique to select the five (5) Quoted agricultural firms listed on Nigeria Exchange Group. The period considered for this study ranging from a period of ten years (2012 to 2021). The secondary data adopted in this study were gathered from financial statements published on the Nigeria Exchange Group Plc and the individual company’s financial statements. The study employed descriptive statistics, correlation matric and panel regression with the help of statistical tool (STATA 13). The random effect regression analysis found out that board size and board of director financial competence have no significant effect on financial performance of quoted agricultural firms in Nigeria. The study concludes that all the independent variable either positive or negative are statistically insignificant on performance of quoted agricultural firms in Nigeria. Therefore, the study recommended reduction of board sizes to the success and survival of corporate listed firms in Nigerian while firms should also increase their size through increase in liquidity and put these to efficient use in order to enjoy economies of scale. The size of the board must not be unwieldy so that company’s businesses can be managed effectively and efficiently by the board members.