CORPORATE GOVERNANCE CODE IMPLEMENTATION AND PERFORMANCE OF NIGERIA LISTED FIRMS
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Date
2023
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Department of Accounting, University of Benin
Abstract
This study investigate the impact of Corporate Governance Code implementation and
performance of listed firms in the Nigeria's financial services sector for the study period of
2018 to 2021, a period spanning the introduction of Nigerian Corporate Governance Code
2018.Corporate governance variables employed are board characteristics, assurance and
firm size. The objective is to measure the degree of compliance of the firms with the NCCG
2018 and its principles and also evaluate the effect of the code on corporate performance.
The study incorporates both qualitative and quantitative research methods, drawing data
from 43 listed firms from 2018-2021. Using fixed effects regressions to analyze the
governance-performance relationships, data is sourced from annual reports available on
firm's websites and the Nigerian Stock Exchange website. The regression analyses reveal that
the NCCG significantly impacts listed firms' financial performance by establishing effective
board characteristics that drive strategic leadership and ethical culture. Findings also shows
introduction of the code has led to improved firm performance and if all components are
adhered agency problems will be reduced. However not all element of corporate governance
has a significant effect on performance. From these findings it is recommended that
Companies must cultivate efficient boards that foster ethical cultures, diverse skills, and
strategic leadership to serve shareholders and stakeholders for sustainable success.
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Citation
Abogun et al.