IMPACT OF CORPORATE GOVERNANCE MECHANISMS ON PROFITABILITY OF NIGERIAN LISTED INDUSTRIAL GOODS COMPANIES

Abstract

This study investigates the determinants that affect the profitability of listed
industrial goods companies in Nigeria. To conduct the empirical investigation, a
descriptive research design was adopted where secondary data were extracted
from annual published financial statements of the listed industrial goods
companies in Nigeria as of December 31st, 2022, for the period of 2013-2022 The
population of the study was the listed industrial goods firm in Nigeria. The
sample size was determined based on the selection criteria of data availability
and listed in the Nigeria Exchange Group. Data collected was analysed using
multiple regression. The findings show that the combined effect of audit
committee meetings, audit committee composition, and audit managerial share
owner has a favourable and significant impact on financial performance for listed
industrial goods businesses in Nigeria. As a result, the study suggests that audit
committee meetings have a favourable and significant impact on the financial
performance of Nigerian listed industrial goods corporations. The report advised
that the government should invest extensively in the assets of large industrial
goods corporations because larger industrial goods enterprises have a higher
degree of profit and such businesses can readily take advantage of economies of
scale to reduce costs and, eventually, profit.