CORPORATE GOVERNANCE AND THE FINANCIAL PERFORMANCE OF QUOTED CEMENT COMPANIES IN NIGERIA

CORPORATE GOVERNANCE AND THE FINANCIAL PERFORMANCE OF QUOTED CEMENT COMPANIES IN NIGERIA

Abstract
Despite the volume of empirical works, there is no consensus on the impact of corporate
governance on firm performance generally. This lack of consensus has produced a variety of
ideas on how Corporate governance influences firm performance. This study examine the
relationship between five corporate governance mechanisms (board size, board composition,
composition of audit committee, managerial shareholding and institutional shareholding) and
three firm performance measures- dividend per share, (DPS), return on capital employed,
(ROCE), and net asset per share, (NAPS), of a sample of four listed cement firms in Nigerian,
between 2004 and 2010.Only secondary data is used in the study. Multiple Regressions of OLS is
used as a tool of estimation. The results provide evidence of a positive association between
performance variable and corporate governance surrogate of Managerial shareholding and
institutional shareholding whereas, board size, board composition and composition of audit
committee have significant negative relationship with the financial performance of the sampled
firms. Consequently, the study recommends, among others, that Boards should comprise of a mix
of executive and non-executive directors majority of who should be non-executive directors.
Also, board size should composed 5-10 members relative to the scale and complexity of the
firm’s operations without compromising independence, compatibility, integrity and availability
of members to attend meetings.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

CORPORATE GOVERNANCE AND THE FINANCIAL PERFORMANCE OF QUOTED CEMENT COMPANIES IN NIGERIA