The Role of Corporate Governance, Internal Control System on Firms’ Financial Performance

The paper is centered on corporate governance, internal control system, and their impact on financial performance of listed manufacturing firms in Nigeria from 2015 to 2024. The population consists of all the 67 manufacturing firms listed on the Nigerian Exchange (NGX) Group that cuts across 7 sectors which include oil and gas, conglomerates, agriculture, consumable goods, industrial goods, healthcare and natural resources. Given the stratified sector, twenty-three (23) listed firms which represent 30% of the population were proportionally selected by ensuring that each sub-sector have equal chance of being represented in proportion of their sizes. While the data were regressed, the study employed a random regression model in arriving at the findings. The study findings reveal that board size is negative and insignificant on financial performance. However, both board composition and audit committee size were positive on financial performance, though audit committee size was insignificant. Therefore, the study recommends that companies should prioritize Board Composition by ensuring that their boards consist of a significant proportion of independent directors. Independent directors can provide better oversight, reduce conflicts of interest, and bring diverse perspectives to strategic decision-making, which can ultimately improve financial performance.