EFFECT OF CORPORATE GOVERNANCE ON FIRM VALUE OF LISTED INDUSTRIAL MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study investigates the effect of corporate governance mechanisms on firm value in listed Industrial
manufacturing companies in Nigeria. Data was collected from a sample of firms over 10 years period
from 2014-2023, focusing on key governance variables including board size, board independence, and
gender diversity and firm value. Longitudinal research design was adopted and panel multiple regression
was used for the analysis. The findings reveal that board size and board independence exert a statistically
significant positive effect on firm value, while board gender diversity exerts a significant negative effect
on firm value. The study recommends among others that Industrial manufacturing companies should
evaluate and adjust board size to ensure an optimal balance of expertise, diversity, and skills. Consider
industry-specific requirements and governance best practices when determining the appropriate number
of board members. Also, Industrial manufacturing companies should strengthen board independence and
diversity to ensure effective oversight of managerial decisions. Increase the proportion of independent
directors with relevant industry expertise and governance experience to enhance accountability and
mitigate potential conflicts of interest