Corporate Governance Code Reforms and Financial Performance of Non-Financial Companies In Nigeria.

Abstract

The study investigates effect of corporate governance code reforms on financial performance of quoted non-financial companies on the Nigerian Stock Exchange. The specific objectives of the study were to determine whether corporate governance code reforms has any effect on firm financial performance using Return on Equity (ROE) and Net Profit Margin (NPM) as a measure of firm financial performance. Ex-post facto research design was used and a sample of 75 quoted non-financial companies with complete and comprehensive published annual reports for the period under review (2011-2020) was used for the study. The Generalised Least Square (GLS) regression was employed to investigate the relationship existing between the variables. The results reveals specifically, that corporate governance reforms has a significant impact on ROE and NPM, which appears to be persistent even after the reform years. The study concluded that corporate governance code reforms has greater effect on financial performance of sampled companies. The study recommends that corporate governance code reforms should be encouraged in all developing nations.