CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF QUOTED HEALTHCARE FIRMS IN NIGERIA

Abstract

The consequence of Nigeria's poor economy in recent times is the exit of some Healthcare industries from the market and the subsequent increase in drug prices in the market. It is opined that lack of strict adherence to the code of governance resulted in the poor financial performance. How corporate governance in quoted Nigerian healthcare firms can solve low financial performance is thus the focus of this study. The theory used for the study was Agency theory. Regression analysis was adopted to analyse the secondary data sourced from Nigeria Exchange Group between the year 2020 and 2024. Results indicate that board size weakly and positively correlates with Return on Equity while Board Independence moderately and negatively correlated with Return on Equity. In other words, when Board size increases Return of Equity increases while when Board independence increase Return on Equity decreases. As policy recommendations, the number of directors and board gender diversity should be more.