A TIME SERIES ANALYSIS OF THE EFFECT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF PHARMACEUTICAL FIRMS IN NIGERIA (A STUDY OF MAY & BAKER PLC)
Abstract
ABSTRACT
This study examined the effect of corporate governance on financial preformance of Pharmaceutical Firms in Nigeria. Specifically, the study determined the effect of Board Ser Board Diligence and Board Diversity on return on asset of Pharmaceutical firmy in Nigeria with evidence from may & baker plc.An ex -post facto research design approach was adopted for the study. The population of this study comprised of ten (10) listed Pharmaceutical Firms in Nigeria. Using time series data for the period of six (6) years (2017 to 2022) and a purposive sampling method. May & \Baker plc was chosen as the sample size. this was due to its profitability position in the industry. Secondary data were obtained which includes the annual report of the companies from 2017 to 2022financial years drived from the company and the company's website. The data collected were presented and analysed using tables, descriptive and inferential statistics. Three hypotheses were, formulated and tested in the course of this study. Regression analysis was used to test for statistical significance of the impact of corporate governance on financial performance of Pharmaceutical Firms in Nigeria. The results showed that Board Size has significant impact on return on asset of May &f Baker ple. The findings further revealed that Board Diligence does not have significant impact on return on asset of May& Baker plc. Finally, the result established also that Board Diversity does not have significant effect on return on asset of May & Baker ple. Consequent upon the findings, this study recommends among others; that Membership to the board should be increased to a maximum number since onlylarger number on board can agued out decision that will be of benefit to the firm. Again, Corporate governance shouldensure better decision-making policies, maximize profits and reduce the risk of humaninterference activities such as fraud, robbery. super-star culture or the only star' whocommits no mistakes.
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