CORPORATE GOVERNANCE DIVERSITY AND FINANCIAL DISTRESS OF MANUFACTURING IN NIGERIA

Abstract

This study examined the impact of corporate governance diversity on the financial distress of Nigerian manufacturing firms over the years (2011-2020). The study used an Ex-Post Facto research design. The population of the study included all manufacturing companies listed on the Nigerian Exchange Group (NXG) with a sample size of fifty five (55) manufacturing companies. The data was obtained from the annual reports of the sample companies submitted by individual companies, the Nigerian Exchange Group (NXG). A panel least square regression analysis was performed to confirm the hypothesis. The study found that the diversity of non-executive directors has no statistically significant effect on the Altman z-score of listed industrial companies in Nigeria. The study recommended for policy, business managers, and shareholders: Non-executive diversity will not obviously militate against bankruptcy risk. However, a greater proportion brings the board under oversight and checks in cases of unethical policy formulation.