Department of Accounting, Olabisi Onabanjo University, Ago-Iwoye, Nigeria
Kajola, S.O., Department of Accounting, Olabisi Onabanjo University, Ago-Iwoye, Nigeria
This paper seeks to examine the relationship between four corporate governance mechanisms (board size, board composition, chief executive status and audit committee) and two firm performance measures (return on equity, ROE, and profit margin, PM), of a sample of twenty Nigerian listed firms between 2000 and 2006. Using panel methodology and OLS as a method of estimation, the results provide evidence of a positive significant relationship between ROE and board size as well as chief executive status. The implication of this is that the board size should be limited to a sizeable limit and that the posts of the chief executive and the board chair should be occupied by different persons. The results further reveal a positive significant relationship between PM and chief executive status. The study, however, could not provide a significant relationship between the two performance measures and board composition and audit committee. These results are consistent with prior empirical studies. © EuroJournals, Inc. 2008.