Effect of corporate governance on performance of selected manufacturing firms in Abia State: Evidence from Nigeria

The study focuses on effect of corporate governance on performance of selected manufacturing firms in Abia State: Evidence from Nigeria: Specifically the study sought to ascertain the effect of Board composition and Size on productivity of the selected manufacturing firms, determine the nature of the relationship between CEO duality and organizational commitment and ascertain the extent at which ownership structure affects employee performance. The study has a population size of 1453, out from which a sample size of 313 was realised using Taro Yamane's formula at 5% error tolerance and 95% level of confidence. Instruments used for data collection weres primarily questionnaire and interview. Out of 313 copies of the questionnaire that were distributed, 286 copies were returned while 27 were not returned. The descriptive survey research design was adopted for the study. The hypotheses were tested using Pearson product moment correlation coefficient and simple linear regression statistical tools. The findings indicated that Board composition and Size significantly negatively affect productivity of the selected manufacturing firms (r = 0. 831; F= 595.253; t = 24.389; p< 0.05). There was a negative relationship between CEO duality and organizational commitment (r =.868, P<.05). Ownership structure to a larger extent significantly affected employee performance (r = 0. 794; F = 453.413; t = 21.294; p< 0.05). The study concluded that corporate governance stems from the fact that sound governance practices by Manufacturing firms inclusive results in higher firm's market value, lower cost of funds and higher profitability. The study recommended that Manufacturing firms should discourage CEO duality, because it will trigger issues of over-concentration of powers in the hands of an individual by assigning both management and supervisory or oversight functions, which in a long run hinders organizational success.