Corporate Governance Practices and Performance of Multinational Companies in Nigeria

ABSTRACT

This research study explores the relationship between corporate governance practices and the performance of multinational companies listed on the Nigerian Stock Exchange (NSE). The study included all multinational firms listed in Nigeria, with a sample of twenty (20) firms from the Nigeria Stock Exchange spanning the period from 2003 to 2022. Regression analysis was used to examine the relationship between dependent and independent variables. The findings indicate that the size of the board does not exert a significant influence on the financial performance of multinational firms in Nigeria. However, board diversity has a significant impact on their financial performance, underlining its importance for sustainable growth. The composition of the board shows limited impact on the financial performance of multinational companies. The presence of an audit committee is not found to significantly affect their financial performance, but high audit quality significantly contributes to enhanced financial performance among multinational companies in Nigeria. It was strongly recommended that Management should carefully consider the size of the board, ensuring it strikes a balance that does not negatively impact the long-term financial performance of the firm and audit quality should be prioritized as it has the potential to significantly enhance the financial performance of multinational firms