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Corporate Governance and the Financial Performance of Quoted Agricultural Firms in Nigeria

Author

Listed:
  • Haman G. Idagiju

    (Accounting and Finance Department, Faculty of Management and Social Sciences, Baze University Abuja, Nigeria)

  • Dr. Josephine Ene

    (Accounting and Finance Department, Faculty of Management and Social Sciences, Baze University Abuja, Nigeria)

  • Dr. Saheed A. Lateef

    (Accounting and Finance Department, Faculty of Management and Social Sciences, Baze University Abuja, Nigeria)

Abstract

The study examined the effect of corporate governance on the financial performance of quoted agricultural firms in Nigeria. This study covered a period of six years from 2018 to 2023.The study was anchored on Agency theory and Stakeholder theory. The study adopted ex-post facto research design. The population of the study consisted of five (5) quoted agricultural firms in Nigeria while the sample size consisted of five (5) agricultural firms that are listed on the Nigerian Exchange Group (NXG). The study made use of secondary data and the data were sourced from Nigerian Exchange Group (NXG). Ordinary Least Square (OLS) regression technique was the technique of data analysis adopted. The results of the study showed that audit committee has a positive and significant effect on net profit margin of quoted agricultural firms in Nigeria, board size has a positive and significant effect on net profit margin of quoted agricultural firms in Nigeria while board independence has a positive and significant effect on net profit margin of quoted agricultural firms in Nigeria. The study concluded that corporate governance has a significant and positive effect on financial performance of quoted agricultural firms in Nigeria. The study recommended that management of agricultural firms should ensure that enough attention is given to the size and independence of audit committee.

Suggested Citation

  • Haman G. Idagiju & Dr. Josephine Ene & Dr. Saheed A. Lateef, 2024. "Corporate Governance and the Financial Performance of Quoted Agricultural Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 1579-1590, March.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:3s:p:1579-1590
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    References listed on IDEAS

    as
    1. Husam Aldamen & Keith Duncan & Simone Kelly & Ray McNamara & Stephan Nagel, 2012. "Audit committee characteristics and firm performance during the global financial crisis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 52(4), pages 971-1000, December.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Flora F. Niu, 2006. "Corporate governance and the quality of accounting earnings: a Canadian perspective," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 2(4), pages 302-327, October.
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