Effect of Corporate Governance on the Going Concern Status of Listed Non-Financial Companies in the Nigerian Stock Exchange Market

Abstract

This study examines the effect of corporate governance practices on the going concern status of listed non-financial institutions in Nigeria. The study considers the directional effects of corporate governance indicators on the continuous and foreseeable existence of institutions providing non-financial services in Nigeria but quoted in the Nigerian Stock Exchange. Ex post facto method was used and data were obtained from the studied companies. Corporate governance variables used in the study include board size, board composition, board meeting and board tenure; these were measured to examine their relationship with the going concern index. The result shows among others that corporate governance variables have no significant aggregate effect on going concern status of the studied companies. The decomposed results however indicate a relationship between two of the corporate governance indicators with going concern index of the studied companies, howbeit not significant. The study recommends that
companies should carefully monitor all elements that indicate going concern
issues and not merely focus on corporate governance because it does not
completely isolate firms from going concern threats. Companies should equally compose their boards based on expertise, experience and qualification rather than gender.