Corporate Governance and Organizational Performance: Evidence from Nigeria

This study examined the relationship between corporate governance and organizational performance in Nigeria via quantitative research design. Corporate governance measures of board size, board independence, chief executive officer ownership and managerial ownership and organizational performance proxies of returns on assets and equities were sourced from quoted oil and gas companies in Nigeria from 2010-2020. Data obtained were analyzed using descriptive and inferential statistics. Overall, the findings revealed that corporate governance measures have a significant effect on performance proxies. More so, the canonical correlation result showed that board size and board independence were the best sets of corporate governance measures that have significant effects on organizational performance in Nigeria. Based on the findings, it is recommended that the stock market regulators should make concerted efforts towards instituting monitoring mechanisms that will ensure independence of the board. In addition, ownership concentration of the board should be adequately specified by the codes of corporate governance such that the proportion of concentration is not skewed in one direction. The practical implication of the study is that an understanding of the best sets of corporate governance measures will assist the management of companies in identifying and implementing the optimum set of corporate governance mechanisms for enhanced organizational performance.