EVALUATING THE IMPACT OF CORPORATE GOVERNANCE ON FIRM ON THE PERFORMANCE OF LISTED COMMERCIAL BANK

This study examines the intricate relationships between corporate governance, financial leverage, and firm performance among listed manufacturing firms in Nigeria. Utilizing a quantitative approach, the research focuses on the impact of board size, audit committee, board independence, ownership concentration, and the debt-to-equity ratio on Return on Equity (ROE). Using secondary panel data from 40 firms between 2019 and 2023, Source of the primary data for the study was annual report, the study employs linear regression analysis to investigate the independence variables. The research design was expo-facto The findings reveal that board size has a significant negative effect on ROE (coefficient = -0.0600, p-value = 0.000), suggesting that larger boards may hinder profitability. In contrast, the audit committee shows a positive but insignificant effect on ROE (coefficient = 0.0917, p-value = 0.154), while board independence and ownership concentration do not significantly impact ROE (coefficients = -0.0009, p-value = 0.829, and 0.0035, p-value = 0.130, respectively). The debt-to-equity ratio emerges as a critical factor with a highly significant negative effect on ROE (coefficient = -0.0649, p-value = 0.000), highlighting the detrimental impact of higher leverage on profitability. The study reveals the moderating role of the debt-to-equity ratio. While board size alone does not significantly affect ROE (p-value = 0.185), its interaction with the debt-to-equity ratio is significant (p-value = 0.009), indicating that higher leverage exacerbates the negative impact of a larger board on profitability. Similarly, the audit committee's positive effect on ROE is enhanced by the debt-to-equity ratio (p-value = 0.000). However, the interaction between board independence and the debt-to-equity ratio is not significant (p-value = 0.667), while the interaction between ownership concentration and the debt-to-equity ratio is positive and significant (p-value = 0.013), suggesting that higher leverage enhances the positive effect of ownership concentration on ROE. These findings provide valuable insights into the complex interplay between corporate governance mechanisms and financial leverage, offering guidance for firms seeking to optimize their governance structures and financial strategies to improve performance. The study's results have significant implications for policymakers, regulators, and corporate leaders, emphasizing the need for balanced governance practices and prudent financial management to ensure sustainable firm performance. Key Words: Corporate Governance, Financial Leverage, Firm Performance, Nigerian Exchange Group (NEG), Return on Equity, Board Size, Audit Committee, Board Independence, Ownership Concentration