International Journal of Social Science & Economic Research
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Title:
ASSESSING THE EFFECT OF CORPORATE GOVERNANCE ON THE NET PROFIT MARGIN OF MANUFACTURING COMPANIES: EVIDENCE FROM NIGERIA

Authors:
UMAR, Abbas Ibrahim, Ph.D.; SULE YAKUBU

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UMAR, Abbas Ibrahim, Ph.D.; SULE YAKUBU
Department of Business Administration, Nile University of Nigeria

MLA 8
Ibrahim, UMAR, Abbas, and SULE YAKUBU. "ASSESSING THE EFFECT OF CORPORATE GOVERNANCE ON THE NET PROFIT MARGIN OF MANUFACTURING COMPANIES: EVIDENCE FROM NIGERIA." Int. j. of Social Science and Economic Research, vol. 5, no. 1, Jan. 2020, pp. 256-269, ijsser.org/more2020.php?id=17. Accessed Jan. 2020.
APA(6)
Ibrahim, U., & YAKUBU, S. (2020, January). ASSESSING THE EFFECT OF CORPORATE GOVERNANCE ON THE NET PROFIT MARGIN OF MANUFACTURING COMPANIES: EVIDENCE FROM NIGERIA. Int. j. of Social Science and Economic Research, 5(1), 256-269. Retrieved from ijsser.org/more2020.php?id=17
Chicago
Ibrahim, UMAR, Abass, and SULE YAKUBU. "ASSESSING THE EFFECT OF CORPORATE GOVERNANCE ON THE NET PROFIT MARGIN OF MANUFACTURING COMPANIES: EVIDENCE FROM NIGERIA." Int. j. of Social Science and Economic Research 5, no. 1 (January 2020), 256-269. Accessed January, 2020. ijsser.org/more2020.php?id=17.

References
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Abstract:
The study investigates the effect of Board Size (BS), Board Composition (BC) and Audit Committee Size (ACS) on the Net Profit Margin (NPM) of consumer goods of Manufacturing Companies in Nigeria. The study used ex-post facto research design. The population of this study comprises of all the quoted consumer goods of Manufacturing Companies in Nigeria. Purposive sampling is used by selecting ten quoted consumer goods manufacturing companies from the total of the consumer goods manufacturing companies in the Nigeria Stock Market list. The study collected data from company's financial statement. Descriptive statistics and Panel regression were used for analysis and the findings showed that board composition and audit committee has positive and significant effect on the profit margin of board composition has positive effect on the profit margin of quoted consumer goods Manufacturing Companies in Nigeria. Also, board size has positive and insignificant effect on the board composition has positive effect on the profit margin of quoted consumer goods Manufacturing Companies in Nigeria. The study recommended that he consumer goods manufacturing companies in Nigeria should focus more on their respective operational activities rather than board size since it is insignificant to achieved effective net profit margin and they should also concentrate more on board composition for better net profit margin.