THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF CONGLOMERATES COMPANIES QUOTED ON THE NIGERIAN STOCK EXCHANGE.

This project titled “Impact of corporate governance on financial performance of conglomerates companies quoted on the Nigerian stock exchange”. Corporate governance is not just about how a 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 examines the impact of board structure on financial performance of listed conglomerates in Nigeria. Board structure was proxied by board size, board composition, and board ownership, while financial performance was proxied by Return on Assets (ROA), Return on Equity (ROE) and Operating Profit (OPRFT). The study uses ex-post factor research design with a population and sample size of 6 quoted conglomerate companies listed on the Nigerian Stock Exchange covering the period between 2008 and 2017. Data for this study was generated from the e published annual accounts and reports of the sampled firms. For the purpose of data analysis, Random Effect regression was utilized for the three models (ROA, ROE, and OPRFT). The study found that board size has a significant positive on financial performance, while board composition and board ownership have a significant negative effect on financial performance. The study therefore recommended 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. In specific terms, the size of board of directors should be reasonable, the ownership of board members should be encouraged, while the composition of board members should contain more nonexecutive directors which will help the board to function effectively and assist in improving the financial performance of listed conglomerates in Nigeria.