CORPORATE GOVERNANCE PRACTICES AND FINANCIAL PERFORMANCE OF LISTED FINANCIAL FIRMS IN NIGERIA
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Date
2026-05-31
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Publisher
Kashere Journal of Accounting and Finance
Abstract
Despite successive regulatory reforms and the introduction of governance codes by the regulators of the Nigerian financial industry, the financial sector is still experiencing notable governance-related challenges. Thus, this study examines how corporate governance practices in terms of transparency and disclosure (TD), shareholders’ rights and participation (SRP), audit committee effectiveness (ACE), and executive compensation (EC) affect the financial performance of listed financial companies in Nigeria. Ex-post facto research design was employed and secondary data covering thirty-nine listed financial firms between 2020 and 2024 were analysed using descriptive statistics, correlation analysis, unit root test, multicollinearity diagnostics, and panel regression analysis. The findings revealed that transparency and disclosure had a negative but statistically significant effect on financial performance (β = - 0.000118, p < 0.05); shareholders’ rights and participation showed a positive but insignificant relationship with performance (β = 0.000968, p > 0.05); audit committee effectiveness had a positive and significant effect (β = 0.017100, p < 0.05); executive compensation exerted a negative but insignificant influence (β = -0.074234, p >0.05). The study concludes that effective governance practices, particularly audit committee oversight and balanced disclosure, are essential for improved financial performance of listed financial firms in Nigeria. It is recommended that financial firms should promote timely and meaningful reporting that enhances investor confidence and prioritize the independence as well as the oversight capacity of audit committees to improve overall firm performance.