Corporate Governance and Return on Assets of Quoted Food and Beverage Firms in Nigeria

Purpose: The Food and Beverage industry is extremely important in any society because it meets basic human needs and has a considerable impact on human existence since the dawn of time. However, studies have shown that quoted food and beverage firms are faced with the struggle to maintain substantial level of net profit before tax, earnings per share, return on assets, return on equity and dividend per share, which are likely due to weak corporate governance (ownership structure, board composition, board diversity, CEO tenure, and board size). Therefore, this study investigated the effect of corporate governance on return on assets of quoted food and beverage firms in Nigeria. Methodology: The study adopted ex-post facto research design. The population of the study was 21 food and beverage firms quoted on Nigerian Exchange as at December 31st, 2021. The study used purposive sampling technique to choose the sample size of 14 quoted food and beverage firms based on the years of listing and data availability. The data used for the study were extracted from the audited annual financial statement of the sampled firms from 2014 to 2021. Descriptive and inferential (multiple regression) statistics were used to analyse the data at 10% significance level. Findings: Findings revealed that corporate governance had significant effect on return on asset (Adj.R2 = 0.05, F (5, 106) = 2.09, p < 0.10).  The study concluded that corporate governance enhanced return on asset of quoted food and beverage firms in Nigeria. Recommendations: The study recommended that food and beverage firms should ensure the independence of the board is embraced and enhanced at all times to ensure improved financial performance and ensure returns on asset.