EFFECT OF CORPORATE GOVERNANCE MECHANISMS ON THE FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

ABSTRACT This study investigated the effect of corporate governance mechanisms on financial performance of listed industrial goods companies in Nigeria. The study adopted seven (7) listed industrial goods companies in the Nigerian Exchange Group. The datasets for this study was from 2017 – 2023 (seven years). Multiple regression analysis was conducted to analyze the linear relationship between the dependent (financial performance) and the independent variables. Notable findings were: board independence, ownership structure and audit committee based on our board independence have a positive but insignificant effect on financial performance, supporting the to increase a board size and independence has no significantly effects financial performance within the sector. Similarly, ownership structure was found to have a negative and insignificant effect on financial performance indicating that the extent of ownership whether concentrated is dispersed does not play a significant role in influencing financial outcome. However, the audit committee showed a positive and significant effect on financial performance implying that the effectiveness of the audit committee in ensuring transparency, compliance and good corporate governance positively contributes to the financial performance of the companies. The study recommended, amongst others, that since board independence was found to have a positive but insignificant effect, regulators bodies should enforce policies that promote the appointment of independent directors with relevant industry experience and financial expertise. This will strengthen the board's ability to make informed decisions that can positively impact financial performance.