Impact of Corporate Governance on Organizational Performance

Abstract

Corporate Governance is the system by which companies are directed and controlled. This study investigates the relationship that exists between corporate governance and firm performance. The specific objectives of the study is to examine the level at which an organization is corporate governance compliance, the study attempt to analyze the impact of corporate governance on organizational performance. In achieving this, questionnaires were administered to 40 managers in Cadbury Nigeria Plc. Agidingbi Ikeja, Lagos. Data were analyzed using Multinomial Linear Regression model. Conclusively, the study reveals that adoption of corporate governance has enhanced accountability and transparent disclosure of financial information, enhanced timely disclosure of financial information to stakeholders and also improved the performance of firms. The study recommends that the Corporate Governance Committee of companies should endeavor to do a regular appraisal of their corporate governance compliance status as it affects performance.