ABSTRACT

 The study focused on the effect of corporate governance on the performance of manufacturingfirmsin Nigeria. An ex-postfacto research design was adopted anddata collected from secondary sources were analysed using ordinary least square techniques. From the regression result for the relationship between board size and performance, the coefficient ofthe model isfound out to be positive (0.316). This result shows that board size andperformance in terms ofROE move in the same direction. The positive relationship is also seen to be considerably important to the performance offirms. This indicates a significant negative effect of board size on the financial performance of the listed firms. The result also revealed that on the relationship between proportion of outside directors and financial performance indicates that significant negative relationship exist between the two variables. Furthermore the study revealed that the audit committee has no significant impact on performance. From analysis the study therefore that a positive relationship exist between manufacturing firm performance, board size and board composition (proportion of non-executive directors). That is, a reasonably moderate correlation exists betweenpoorperformance and subsequent increase in board size and independence. While there is no significant relationship between Audit committee andperformance ofmanufacturingfirms. Based on the findings ofthis research, the study provides recommendations that efforts to improve corporate governance shouldfocus on the value ofthe stock ownership of board members, since it is positively related to bothfuture operatingperformance and to theprobability ofdisciplinary management turnover inpoorlyperforming.