Corporate Governance, Corruption and Financial Performance of Listed Fast Moving Consumer Goods (FMCG) Companies in Nigeria.

This study explores governance challenges and corruption dynamics within Nigeria's Fast Moving Consumer Goods (FMCG) sector. It investigates the corporate governance, corruption, and the financial performance of listed FMCG firms in Nigeria. It employed an ex-post facto research design to analyze historical data on corporate governance and financial performance. The population comprised of 21 listed FMCG companies in Nigeria and using purposive sampling, 17 were selected ensuring relevant data from 2014 to 2023. Secondary data were sourced from annual reports. Data analysis involved descriptive statistics to summarize central tendencies, variability, and dispersion, a correlation matrix to assess relationships between variables. Ordinary Least Squares regression was used to estimate relationships and test hypotheses using E-VIEW software. The study finds that corruption significantly shapes corporate governance, positively affecting board independence (β = 0.190446, p = 0.0000), gender diversity (β = 0.130695, p = 0.0000), and executive compensation (β = 0.104154, p = 0.0000). Furthermore, corruption moderates the relationship between governance and financial performance, enhancing the positive effect of board independence on ROA but amplifying inefficiencies of larger boards. Corruption positively impacts ROA (β = 28.16272, p = 0.0000) but negatively affects EPS (β = -1570.961, p = 0.0000). The study concludes that corporate governance and corruption significantly influence financial performance in Nigerian FMCG companies. Corruption moderates these relationships, amplifying the need for governance vigilance. It is recommended that companies enhance board diversity and align executive compensation with performance goals while adopting anti-corruption measures to ensure sustainable financial outcomes and robust governance practices.

Corporate Governance, Corruption, Financial Performance

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