CORPORATE GOVERNANCE AND PERFORMANCE OF LISTED MULTINATIONAL COMPANIES IN NIGERIA

Abstract

The study examined effects of corporate governance on performance of selected listed multinational companies in Nigeria. The study used 20 multinational companies randomly selected from 78 listed multinational companies on the Nigeria Exchange Group (NGX). The study sourced for data via the annual reports of the selected banks over a period of 5 years spanning from 2018 to 2022. Data collected were analyzed using both descriptive and inferential methods of analysis. Descriptive analysis conducted within the study included mean analysis, measure of dispersion, minimum and maximum analysis, followed by correlation analysis, pooled OLS estimation, fixed effect estimation and random effect estimation. The study reveals that board composition, gender diversity, audit committee exerts a positive and significant effect on the performance of multinational companies to the tune of 0.057706 (P=0.000<0.05), 0.006949 (P=0.000<0.05) and 11.40870 (P=0.000<0.05) respectively. While, leverage exert a negative but insignificant effect on performance to the tune of -0.008741(P=0.000<0.05). From the findings of the study based on the most fitted random effect model, board composition, gender diversity, audit committee and firm growth have positive effects on the performance of multinational companies in Nigeria ; while leverages of the firms has no effect on their performance. The study concluded that corporate governance exerts both positive and negative effect on performance of listed multinational companies in Nigeria, especially when measured performance in term of return on equity. Hence, the study recommended that, the monitoring function of the members of the board of multinational companies should be directed at pressing must be productive and engender a rise within the performance level and therefore the management of those companies should know that tons of advantages are embedded in corporate governance if well managed.