Monitoring characteristics and financial performance of conglomerate firms in Nigeria

The continued spate of unethical behavior by the management of corporate entities which result in their failure leads to the need of good corporate governance. The paper empirically investigates impact of monitoring characteristics and firm performance of listed conglomerate firms in Nigeria. Correlational research design was used for the purpose of this study as it was found suitable to look in to a relationship between the variables. The sample of the study is 6 firms from the period of 2007-2012. Panel multiple linear regression technique of data analysis was adopted. The result reveals that monitoring characteristics have significant impact on firm performance as measured by ROA of conglomerate firm in Nigeria. Therefore the study recommended that the management of listed conglomerate firm in Nigeria should give a priority to block holders CEO duality and independent directors while considering a decision on how to allot shares, while allotting less number to institutional shareholders as will cause decrease on the return on asset.