Corporate Governance and Financial Performance: A Strategic Framework for Funding Sustainability in Modern Philanthropic Organizations

Author: Abimbola Abosede Olajide, Adeniyi Sarafadeen Diran, Murtadho M. Alao

Abstract

Examining the validity of Corporate Governance (CG) features, such as audit meeting frequency, ownership concentration, board meeting frequency, foreign and institutional ownership, gender diversity on the board, audit committee size, board size, audit reputation, and CEO, is the aim of this study. Business performance in Nigeria is impacted by compensation. This study quantified the association between CG and firm success measures (Return on Asset and Tobin's Q) utilizing NGOs from 2011 to 2024 using the pooled least squares technique. The fact that the NGO CG system is the same is a significant result. The NGO is in the same status as when it was founded since Tobin's Q is lower than ROA. NGOs in general. It contradicts the results of the NGO's profitability proxies. The profitability proxies show lesser returns in comparison. Nigeria requires both proper CG practices for certain business procedures and a uniform CG code. This study contributes to the body of knowledge in the CG sector by examining how CG practices affect the performance of Nigerian enterprises. Despite earlier research on the topic in Nigeria, the present study is distinct since it uses a substantial quantity of data to compare the two selected businesses. In previous studies, the time period was also short just five years. Furthermore, the criteria for CG were similarly limited, and the firm's success was assessed using an accounting-based tool rather than a market-based one.