CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF QUOTED PHARMACEUTICAL FIRMS IN NIGERIA

Abstract

The aim of this study was to investigate corporate governance and financial performance of quoted pharmaceutical firms in Nigeria. The broad objective of this study was to determine the relationship between board size, board independence, board meeting, audit committee meeting and financial performance of quoted pharmaceutical firms in Nigeria. Samples of six (6) pharmaceutical firms quoted on the Nigeria Stock Exchange were conveniently selected for a period of seven (7) years (2012 — 2018). Panel Least Square (PLS) regression technique was employed in estimating the data and testing the formulated hypotheses. The results of the study revealed that there is a significant relationship between board size, audit committee meeting and financial performance of pharmaceutical firms in Nigeria. While board independence and board meeting were statistically insignificant, hence did not influence financial performance of pharmaceutical firms in Nigeria for the period under review. In line with the findings, it is therefore recommended that the SEC code of corporate governance specify the maximum number of meeting the board should have annually; this is enhanced the financial performance of pharmaceutical firms in Nigeria.