Corporate Governance and Firm Value of Services Firms in Nigeria

Abstract

The study analyzed the effect of corporate governance on firm value of service firms in Nigeria. The specific objectives are to analyse the effect of directors’ remunerations, examine the effect of board size and investigate the effect of audit committee size on net assets of services firms in Nigeria. The study was based on a sample of ten (10) service firms listed on Nigeria Exchange Group during 2013-2022 periods. Descriptive Statistics, Unit Root test and Panel Least Square Regression Analysis were used to examine a total of 100 panel data observations from the selected firms. The results of the analysis reveal that DIR positively, but non-significantly affect NETA of service firms in Nigeria {DIR Coeff = 14.53707 and P-value = 0.1299>0.05}: BDS positively, but non-significantly affect NETA of service firms in Nigeria {BDS Coeff = 719848.3 and P-value = 0.1915>0.05}: ACS negatively, but non-significantly affect NETA of service firms in Nigeria {ACS Coeff = -1453967 and P-value = 0.0958>0.05}. The study recommends that Directors should be adequately remunerated to enable them formulate good policies and provide oversight function on the management of the firms. Each firm should locate its optimal board size to maximize benefits from corporate governance. A board size of 7 to 10 is recommended. Firms should reduce their audit size to an optimal size of 5 members in line with CAMA 2020.