Corporate Governance and Financial Performance of Listed Consumer Goods Firms in Nigeria

The study investigated corporate governance and financial performance of listed consumer goods firms in Nigeria. The specific objectives of the study were to examine the relationship between board size, board independence, board meetings, and return on assets of consumer goods firms in Nigeria. The study adopted ex-post facto research design and secondary data were extracted from the annual reports of sampled consumer goods firms for the period 2013 – 2022. Correlation technique was used for the test of hypotheses. Findings showed that, board size does not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of -0.3815. On the other hand, board independence does not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of 0.2753. However, board meetings do not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of -0.3904. This implies that none of the corporate governance mechanism studied can be influence return on assets of consumer goods firms in Nigeria. The study recommended that rather than solely increasing board size, consumer goods firms should prioritize diversity and the expertise of board members. Directors should possess skills and experience that align with the industry's specific needs. Achieving a balance between independent and non-independent directors is crucial. While board independence is important for governance, it should not impede industry-specific knowledge. Companies should strengthen board oversight mechanisms, utilizing robust audit committees and reporting structures to maintain independence while promoting industry expertise. The focus should be on the quality of board meetings rather than a specific number.