ABSTRACT

The study investigates the impact of corporate governance on the productivity of conglomerate firms in Nigeria from 2018 to 2022. The research investigated three key aspects: the relationship between board composition and firm productivity, the influence of executive compensation structures on productivity, and the effect of transparency and disclosure practices on firm productivity.  Utilizing a longitudinal research design, the study analyzes secondary data extracted from the audited annual reports of 40 selected Nigerian conglomerates. Through robust statistical methods, including descriptive statistics, correlation analysis, and panel data regression, the study examines the causal relationships between the corporate governance variables and firm productivity, measured by return on assets (ROA).

Key findings reveal that board composition and executive compensation significantly impact firm productivity, with board composition showing a positive correlation and executive compensation demonstrating a significant positive influence on productivity. Conversely, transparency and disclosure practices appear to have an insignificant and negative relationship with firm productivity. These results challenge the commonly held belief that higher transparency and extensive disclosure practices necessarily enhance firm performance. Based on the empirical evidence, the study recommends optimizing board composition to balance executive and non-executive members, reconsidering the role and purpose of board independence, and fostering gender diversity to potentially improve financial outcomes. These recommendations are geared towards strengthening corporate governance frameworks to enhance the productivity and performance of firms.