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ABSTRACT
The study examined empirically the relationship between corporate governance and business failure in Nigerian quoted companies. The study utilised descriptive statistics, correlation analysis and the ordinary least square (OLS) regression methodology to analyse the existence of relationships between corporate governance variables and business failure in Nigeria. The study focused on all companies quoted on the floor of Nigerian Exchange Group as at 31st December, 2022 but utilised a sample of 40 quoted companies covering a period of 5 years (2018-2022). The results indicate the existence of a positive and significant relationship between board independence and business failure in Nigerian firms. Board gender diversity measured using the proportion of female board of directors has no significant impact on business failure in Nigerian quoted companies. Board size has a positive and insignificant influence on business failure in quoted Nigerian companies. This insignificance was confirmed due to the fact that the probability value of 0.0658 (6.58%) is higher than the absolute critical t-values at 5% level of significance. The study recommends the inclusion of mixed genders in the board improves firm value and yields optimal results; hence, policy makers and stakeholders should encourage female representation in the board which could mitigate agency problem and improve users’ reliance on corporate financial reports for decision making.
