Corporate Governance and Firm Value of Listed Companies in Nigeria

This study examined the effect of corporate governance on firm value of listed firms in Nigeria, focusing specifically on board size, board independence, and board expertise, while firm value was proxied by Tobin’s Q and Price Earnings Ratio (PER). The study adopted an explanatory research design and utilized panel data obtained from 11 selected firms, representing 11 sectors out of 126 listed firms in Nigeria, over an 11-year period from 2015-2024. Data were analyzed using descriptive statistics, correlation analysis, and panel unit root tests to ensure data suitability, while the Hausman test supported the adoption of the random effects regression model for estimation. The findings revealed that board size exhibited a negative but insignificant effect on Tobin’s Q and a positive but insignificant effect on PER, while board independence showed a positive but insignificant effect on Tobin’s Q and a negative but insignificant effect on PER. Similarly, board expertise demonstrated a positive but insignificant effect on Tobin’s Q but a negative and insignificant effect on PER, indicating that all governance variables had mixed directional but statistically insignificant effects on firm value. Based on these findings, the study recommends that firms should adopt optimal board structures by balancing size, independence, and expertise in ways that enhance strategic decision-making while strengthening governance practices to improve firm value.

Tobin’s Q, Price Earnings ratio, Board Independence

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