ABSTRACT

The aim of the study is to examine the impact of corporate governance on firm productivity in Nigeria.

The ex-post facto research design was employed in the study, the population consisted of firms listed in the manufacturing sector of Nigeria Exchange Group as at Dec. 2022. The census of all companies listed in the consumer goods sector (19) was taken as sample for the study from 2014-2022. The data was sourced from the annual report of companies. The data was analysed using the descriptive, correlation and regression analysis.

The findings revealed that board composition was found to have a negative and significant impact on firm productivity. Executive compensation was found to have a negative but insignificant impact on firm productivity. Audit committee was found to have a positive but insignificant impact on firm productivity. Corporate governance rating was fond to have a positive but insignificant impact on firm productivity. As such, the study recommends among others that given that a diverse board composition can negatively impact firm productivity, suggesting a balanced board with diverse qualifications and experience. Additionally, companies should re-evaluate their executive compensation structures to ensure they align with industry standards and company performance. Incentivizing executives with a pay-for-performance model can help improve productivity.