Corporate Governance Dynamics and Performance of Consumer Goods Firms

Nigeria Experience

Abstract

Corporate governance is a set of processes, customs, policies and laws affecting the way a corporation is directed, administered and controlled. It represents the methods through which organizations are being administered, a structure through which the welfare of different parties with vested interests are harmonized, showing a group of interaction between the company's administration, its board, its shareholders and other interested parties. The main objective of this study is to examine corporate governance dynamics and performance of consumer goods firms (Nigeria experience). Specifically, the study examined the effect of Director’s remuneration, determine the effect of board size, ascertain the effect of board duality and investigate the effect of board gender on performance of consumer goods firms in Nigeria. Ex-post facto research design was adopted in the study; the multiple regression analysis was used. The result of the study revealed that Director’s remuneration has significant effect on the performance of consumer goods firms in Nigeria, board size has significant effect on the performance of consumer goods firms in Nigeria, board duality has no significant effect on consumer goods firms in Nigeria and gender diversity has no significant effect on the performance of consumer goods firms in Nigeria. The study therefore submits that corporate governance dynamics has improved the performance of consumer goods firms in Nigeria. Amongst the recommendations is that consumer goods firms in Nigeria should determine the optimum payment that will not affect market value of share of consumer goods firms in Nigeria. Consumer goods firms in Nigeria should not select their board size below the mean value; Consumer goods firms should select size of board to create equilibrium between the requirements for timely advice and the financial implications of maintaining large board membership. Consumer goods firms in Nigeria should not be in a hurry to assign more than one responsibility to each of the directors since it has no significant effect on market value of share. Consumer goods firms in Nigeria should not focus on gender diversification so much since it has no significant effect on market value of share.