Original Research Article | OPEN ACCESS
Corporate Governance and Financial Performance of Listed Conglomerates in Nigeria

S. J. Musa

Department of Accounting, Faculty of Social Management Sciences, Adamawa State University Mubi, Adamawa State, Nigeria;

For correspondence:-     Email: jerrym6@gmail.com

Received: August 28, 2019        Accepted: September 21, 2019        Published: September 30, 2019

Citation: Musa SJ. Corporate Governance and Financial Performance of Listed Conglomerates in Nigeria. Account Tax Rev 2019; 3(3):44-57 doi:

© 2019 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..


Corporate governance is not just about how company is directed and controlled to maximize performance and ensure accountability to stakeholders. Better governance practices and processes have become imperative for both national and global economics. This study on the impact of corporate governance on financial performance of complements in Nigeria was conducted to examine the effects of corporate governance attributing board size, board composition on financial performance (proxied by Return on Assets (ROA), Return on Equity (ROE)). The study uses the ex-post factor research design with a population and sample size of 6 quoted conglomerate companies listed on the in Nigerian Stock Exchange covering the period between 2008 and 2017. Data for this study was generated from the published annual accounts and reports of the sampled firms. For the purpose of data analysis, Random Effect regression was utilized for the two models (ROA and ROE). The study found that board size has a significant positive effect on financial performance, while board composition and board ownership have a significant negative effect on financial performance. The study therefore recommends that the management and board of directors of listed conglomerate companies in Nigeria should perform their duties effectively and efficiently in boosting the financial performance of their companies and also composition of boards of conglomerate should have more non-executive directors so as to be independent.

Keywords: Corporate Governance, Return on Assets, Return on Equity, Conglomerates

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