Effect of Corporate Governance Attributes on Earnings Response Coefficients of Listed Consumer Goods Manufacturing Firms in Nigeria

Abstract

Corporate Governance (CG) has assumed a generalized concept relating to companies well-being. Scandals occasioned by Corporate Governance failure continue to raise concerns about the effectiveness of CG designs and implementation as it affects financial reporting quality of listed consumer goods manufacturing firm in Nigeria. This study therefore is an attempt to examine the impact of corporate governance attributes on earnings response coefficients of consumer goods manufacturing firm in Nigeria. The study adopts ex-post factor research design whereby data was sourced mainly from the audited annual financial reports of listed consumer goods manufacturing firm on the floor of Nigerian Exchange Group for the period 2015-2024. The population of the study consists of twenty one (21) consumer goods manufacturing firm as at December, 2024. The sample size of seven (7) consumer goods manufacturing firm in Nigeria were arrived at using purposive sampling technique whereby consumer goods manufacturing firm which have their annual report and accounts readily accessible for the study period were selected. Analytical techniques used in the study consist of both descriptive and inferential statistics. The result of panel regression analysis on the effect of corporate governance attributes on earnings response coefficients of listed consumer goods manufacturing firms in Nigeria revealed that one (1) out of the four (4) explanatory variables was significant in explaining the variation in earnings response coefficients. This variable is Audit Committee (p=0.0374). The study concluded that there is a significant relationship between corporate governance attributes and the earnings response coefficients of consumer goods manufacturing firm in Nigeria. Therefore, the study recommended that firms should be required to publicly disclose detailed information on the composition and roles of their boards, audit committees, ownership structure, and CEO roles. This will enhance accountability and allow investors to assess governance risks more accurately.