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

This study investigated the effect of corporate governance mechanisms on financial performance of listed industrial goods companies in Nigeria. The study sampled seven (7) listed industrial goods companies at the Nigerian Exchange Group. The duration for this study was from 2017 – 2023 (seven years). Multiple regression analysis was conducted to evaluate the linear relationship between the dependent (financial performance) and the independent variables (board size, board independence, ownership structure and audit committee. board size and board independence have a positive but insignificant effect on financial performance, suggesting that an increase in board size and independence does not significantly enhance financial performance within the sector. Similarly, ownership structure was found to have a negative and insignificant effect on financial performance, indicating that the nature of ownership, whether concentrated or dispersed, does not play a significant role in influencing financial outcomes. 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, regulatory 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 unbiased decisions that can positively impact financial performance.