GOVERNANCE AND MANAGERIAL EFFECIENCY OF LISTED INDUSTRIAL GOODS MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study investigates the effect of corporate governance structure on managerial efficiency, with a specific focus on industrial goods manufacturing firms listed in Nigeria. Organizational efficiency, conceptualized as the ability to maximize revenue from existing asset bases, was measured using the asset turnover ratio (ATR). Using an ex-post facto research design, data were collected from the audited annual reports of ten selected industrial firms over a 17-year period (2006–2022). Employing a random-effects Generalized Least Squares (GLS) regression model with Driscoll-Kraay standard errors, the analysis revealed that governance attributes jointly have a significant effect on asset turnover ratio.

The findings suggest that a well-structured board, particularly with balanced gender representation and a streamlined audit committee, can enhance organizational efficiency.. These results have critical implications for regulators, investors, and company management, highlighting the need for inclusive yet strategically aligned governance structures that optimize managerial effectiveness in Nigeria’s industrial goods sector.

JEL Classifications: G34, H29

KEYWORDS:

Audit committee size, Board diversity, Board independence, Governance structure, organizational efficiency