Corporate Governance and Financial Performance in the Nigerian Service Firms

Abstract

This study ascertained the effect of corporate governance and financial performance in the Nigerian service firms, using director’s equity holding and corporate governance disclosure as the independent variables. Ex Post Facto redesign was adopted for the study. Data for the study were extracted form annual reports and accounts of the sampled service firms in Nigeria spanning from 2013 to 2023. Regression analysis was employed to test the hypotheses. The study shows that that and director’s equity holdings has significant effect on return on assets of service firms in Nigeria at 5% level of significance. The study indicated that corporate governance disclosures have not significantly affected return on assets of service firms in Nigeria. The study thereby concludes that corporate governance has partial significant effect on financial performance in the Nigerian service firms. Based on the findings from the analysis, the study recommended among others that directors need to be encouraged as this may influence their commitment to the company's long-term performance.