Governance Mechanism, Financial Reporting Quality and Value of Listed Non-Finance Firms in Nigeria

Abstract

The study examined the impact of governance mechanisms namely board independence, board gender diversity, board executive compensation, and financial reporting quality on firm value of listed non-finance firms in Nigeria. Data covering a period of 10 years (2015 to 2024) from 75 non-finance listed firms formed the sample of the study. Panel data regression analysis was used for estimation. Findings show that board gender diversity, board executive compensation, and financial reporting quality were significantly related to earnings yield as a proxy for firm value. Also, board independence showed a positive but not significant relationship with earnings yield. It was recommended that managers of firms should put in effort in ensuring fair representation of facts in the financial reports as these directly influence managerial capabilities for investment as reflected in earnings yield. The study also has implications for board executive compensation as this relates positively with earnings yield.

Key words: Earnings yield, Board Independence, Executive Compensation, Board Gender Diversity, Firm value

DOI: 10.7176/RJFA/16-8-01

Publication date: October 31^st 2025