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ABSTRACT
This study investigates the effect of corporate governance mechanisms—board size, audit committee independence, and board composition—on the performance of manufacturing and financial firms listed in the Nigerian Exchange Group (NGX) between 2018 and 2022. Using scale efficiency and cost discipline as measures of firm performance, the study adopts a comparative research design to explore sector-specific dynamics. The results reveal that board size positively affects asset-based scale efficiency in manufacturing firms but negatively impacts cost discipline in the banking sector. Audit committee independence demonstrates limited influence on performance across both sectors. Board composition, particularly the presence of independent directors, positively influences performance in manufacturing firms but hinders performance in the banking sector. These findings highlight the importance of tailoring corporate governance mechanisms to the specific needs of different industries to optimize performance. The study contributes to the literature by offering sectoral insights into the role of corporate governance in enhancing firm performance.
