CORPORATE GOVERNANCE AND FIRM PERFORMANCE: A SYNTHESIS OF EMPIRICAL EVIDENCE FROM EMERGING MARKETS

Abstract

The relationship between corporate governance and firm performance in emerging markets is examined in this study. The study investigates the ways in which board size, independence, financial expertise and other governance characteristics affect financial outcomes like return on assets (ROA) and Tobin's Q by comparing various sectors. The dataset includes 50 publicly traded companies that operate in emerging countries, primarily Nigerian enterprises listed on the Nigerian Exchange Group (NGX) between 2018 and 2023. The firms were selected using purposive sampling technique and data were sourced from financial databases such as corporate governance disclosures available on relevant companies audited financial statements. Using quantitative data from publicly listed firms in Nigeria, the study applies regression techniques to assess the variations in governance effectiveness. The findings reveal negative or mixed influence of board size, the positive contribution of board independence, and the strong significance of financial expertise on performance metrics. The result of the findings offers valuable insights for policymakers, investors, and corporate leaders aiming to enhance governance frameworks and firm competitiveness in emerging markets and also recommended future research directions that include broader conceptual models and mixed-methods approaches to unpack the nuanced dynamics of corporate governance.