Influence of Board Characteristics and Ownership Concentration on Corporate Sustainability Growth among Listed Manufacturing Companies in Nigeria

  • Aderemi Olalere Adebayo Osun State University, Osogbo, Nigeria
  • Idris Adegboyega Onikoyi Osun State University, Osogbo, Nigeria
  • Tajudeen Ayofe Kareem Osun State University, Osogbo, Nigeria
  • Wasiu Adebayo Lamidi Osun State University, Osogbo, Nigeria
Keywords: Board Composition, Board Size, Leverage, Ownership Concentration, Sustainability Growth


The influence of corporate governance on the manufacturing firms’ sustainable growth during the financial crisis period cannot be overemphasized. Hence, this study was carried out find out the kind of influence the corporate governance mechanisms have on the corporate sustainable growth in Nigeria. The population of the study consists of listed manufacturing companies, and a sample size of 30 manufacturing firms was selected using a purposive sampling technique based on convenience, covering a time period of five financial years (2011 to 2020). The regression method was used to analyze the data collected through secondary sources. The result showed that board size, board composition, ownership concentration, board independence, and firm size had a positive relationship with corporate sustainable growth while leverage had a negative relationship with corporate sustainable growth. Thus, the study showed that corporate governance exercises a positive influence on corporate sustainable growth and the study recommended that listed manufacturing firms put in place a larger board structure that encompasses people of different backgrounds, skills, and experience in order to help the companies move forward during difficult times; and a good board structure that makes provision for the presence of independent directors needs to be maintained, to checkmate the management so that all the decisions taken by the management will be the ones to achieve the company’s ultimate goal


Abass, U., Farooq, M. I., Kashif, A., Hassan, S. & Murtaza, S. (2021). Effect of dividend paying behaviour and board size and board composition on firm’s performance: evidence from Pakistan. Academy of Accounting and Financial Studies Journal, 25(2), 1 – 18.
Abubakar, A. (2016). Firm attributes, board characteristics and corporate social responsibility of listed deposit money banks in Nigeria (Doctoral dissertation, Thesis submitted to ABU, Zaria).
Akinkoye, E.Y., & Olasanmin, O. O. (2014). Corporate governance practice and level of compliance among firms in Nigeria: industry analysis. Journal of Business and Retail Management Research, 9(1).
Al-Absy, M. S.M., Ismail, K. N. I., &Chandren, S. (2019). Corporate governance mechanisms, whistle blowing policy and real earnings management. International Journal of Financial Research. Retrieved from
Alhassa, I. & Mamuda, A. U. (2020). Ownership structure and financial performance of quoted financial firms in Nigeria. International Journal of Accounting Research, 5(4), 116 – 124.
Amouzesh, N., Moeinfar, Z. & Mousavi, Z. (2011). Sustainable growth rate and firm performance: Evidence from Iran Stock Exchange. International Journal of Business and Social Science, 2 (23), 249 – 255.
Appuhami, R. & Bhuyan, M. (2015). Examining the influence of corporate governance on intellectual capital efficiency: evidence from top service firms in Australia. Managerial Auditing Journal, 30 (5), 347 - 372
Arora, A., and Sharma, C. (2016). Corporate governance and firm performance in developing countries: Evidence from India. Corporate Governance, 16(2), 420-436.
Badawy, H. A. (2020). Audit committee effectiveness and corporate sustainability growth: the case of Egypt. Alexandria Journal of Accounting Research, 4(2), 1-41.
Cadbury Committee (1992). Report of the committee on the financial aspects of corporate governance. Gee Publishing, London.
Camisón-Zornoza, C., Forés-Julián, B., Puig-Denia, A. & Camisón-Haba, S. (2020). Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms. International Entrepreneurship and Management Journal,
Chang, C. (2009). The corporate governance characteristics of financially distressed firms: evidence from Taiwan. Journal of American Academy of Business, Cambridge, 15(1), 125-132.
Cheng, S. (2008). Board size and the variability of corporate performance. Journal of Financial Economics, 87(1), 157-176.
Dalton, C. M., & Dalton, D. R. (2005). Boards of directors: Utilizing empirical evidence in developing practical prescriptions. British Journal of Management, 16(1), 91-97.
Datta, D. K., Basuil, D. A. & Agarwal, A. (2020). Effects of board characteristics on post-acquisition performance: A study of cross-border acquisitions by firms in the manufacturing sector. International Business Review, 29(3), 1-13
Evans, C. R., & Dion, K. L. (2012). Group cohesion and performance: A meta-analysis. Small Group Research, 43(6), 690–701.
Fonseka, M. M., Ramos, C. G. & Tian, G. (2012). The most appropriate sustainable growth rate model for managers and researchers. The Journal of Applied Business Research, 28(3), 433-444.
Gill, A. & Mathur, N. (2011). Board Size, CEO duality, and the value of Canadian manufacturing firms. Journal of Applied Finance and Banking, 1(3), 1-13.
Gill, A., & Biger, N. (2013). The impact of corporate governance on working capital management efficiency of American manufacturing firms. Managerial Finance, 39, 16-132.
Godos-Díez, J. L., Cabeza-García, L., Alonso-Martínez, D., & Fernández-Gago, R. (2018). Factors influencing board of directors’ decision-making process as determinants of CSR engagement. Review of Managerial Science, 12(1), 229–253.
Gorton, G., & Schmid, F. (1996). Universal banking and performance of German firms. Working Paper 5453, National Bureau of Economic Research, Cambridge, Massachusetts USA.
Guest, P. (2009). The impact of board size on firm performance: Evidence from the UK. The European Journal of Finance, 15(4), 385-404.
Greenword, C. A. (2015). Whistleblowing in the fortune 1000: what practitioner told us about wrongdoing in corporation in a pilot study? Public Relation Review, 4(1): 490 – 500.
Hartono, G. C. & Utami, S. R. (2016). The comparison of sustainable growth rate, firm’s performance and value among the firms in Sri Kehati Index and IDX 30 Index in Indonesia Stock Exchange. International Journal in Advanced Research in Management and Social Sciences, 5 (5), 68 – 81.
Herdjiono. I., & Sari, I. M. (2017). The effect of corporate governance on the performance of a company. Some empirical findings from Indonesia. Journal of Management and Business Administration, 25(1), 33-52.
Higgins, R. C. (1977). How much growth can a firm afford? Financial Management, 6 (3), 7-16.
Hussain, N., Rigoni, U., & Orij, R.P. (2018). Corporate governance and sustainability performance: analysis of triple bottom line performance. J. Bus. Ethics, 149 (2), 411–432.
Ho, S.S. & Wong, K.S. (2001). A study of the relationship between corporate governance structures and the extent of voluntary disclosure. J. Int. Account. Audit. Tax. 10 (2), 139–156.
Jensen, M.C., & Meckling, W.H., (1976). Theory of the firm: managerial behaviour, agency costs, and ownership structure. Econ. Anal. Law, 3(4), 305–360.
Kajola, S. O. (2008). Corporate governance and firm performance: The Case of Nigerian Listed Firms. European Journal of Economcs, Finance and Administrative Sciences, 145-288.
Kharabsheh, B., Suwaidan, S. M., & Elfaitouri, R. (2019). Nonlinear association between controlling shareholders and leverage: Evidence from Jordan. Afro-Asian Journal of Finance and Accounting, 9(2), 193.
Larmou, S., &Vafeas, N. (2010). The Relation between board size and firm performance in firms with a history of poor operating performance. Journal of Management and Governance, 14(1), 61-85.
Lepore, L., Di Vaio, A., Sorrentino, M., & Palladino, R. (2019). Ownership structures and corporate performance: A literature review. New Challenges in Corporate Governance: Theory and Practice, 190-205.
Li, X., Liu, Z., & Ren, F. (2015). Study on relationship between board characteristics and sustainable growth of family listed companies. Science Journal of Business and Management, 3(1), 11-16.
Liu, Y., Miletkov, M. K., Wei, Z., & Yang, T. (2015), Board independence and firm performance in China. Journal of Corporate Finance, 30.
Liu, H. (2011). An empirical study on board characteristics and sustainable growth of listed companies. Advanced Material Research, 403 – 408, 2526 – 2529.
Margaritis, D., & Psillaki, M. (2010). Capital structure, equity ownership and firm performance. Journal of Banking and Finance, 34(3), 621-632.
Mat Nor, F., Ramli, N. A., Marzuki, A., & Rahim, N. (2020). Corporate sustainable growth rate: the potential impact of COVID – 19 on Malaysian companies. The Journal of Muamalat and Islamic Finance Research, 17, 25 – 38.
Morck, R., Shlieifer, A. & Vishny, R. W. (1988). Management ownership and market valuation: An empirical analysis. Journal of Financial Economics, 20, 347-376.
Momčilović, M., Begović, S. V., Tomašević, S. & Ercegovac, D. (2015). Sustainable growth rate: evidence from agricultural and food enterprises. Journal of Sustainable Business and Management Solutions in Emerging Economics, 20(76), 63-75.
Mukherjee, T. & Sen, T. T. (2019). Impact of corporate governance on corporate sustainable Growth. Retrieved from
Nastiti, P.K. Y., Atahau, A. D. R. &Supramono, S. (2019). Working capital management and its influence on profitability and sustainable growth. Retrieved from
Nazar, M.C.A. & Rahim, R. A. (2015). Impact of corporate board size on corporate performance: evidence from Sri Lanka. International Journal of Management and Applied Science, 1(9), 40-44.
Oludele, O. I., Magret A. O., & Tobiah, O. (2016). Impact of board size on the financial performance of the listed manufacturing companies in Nigeria. Journal of Business and Management, 18(11), 76-83.
Paniagua, J., Rivelles, R. & Sapena, J. (2018). Corporate governance and financial performance: the role of ownership and board structure. Journal of Business Research, 89(2018), 229-234.
Pintea, M. O., & Fulop, M. T. (2014). Corporate governance and performance in the context of sustainable development. SEA– Practical Application of Science, 2 (3), 519-526.
Pfeffer, J. (1972). Size and composition of corporate boards of directors: The organization and its environment. Administrative Science Quarterly of Directors, 17(2), 218-228
Rădăşanu, A. C. (2015). Cashflow sustainable growth models. Journal of Public Administration, Finance and Law, 7, 62 - 70
Rahim, N. (2017). Sustainable growth rate and firm performance: A Case Study in Malaysia. International Journal of Management, Innovation & Entrepreneurial Research, 3(2), 48- 60.
Rahim, N. & Saad, N. (2014). Sustainable growth of public listed companies using capital structure choices and firm performance in an ASEAN market. Proceeding on General Summit on Education, Kuala Lumper, Malaysia.
Rosdiana, Laba, A., Asdar, M., Sobarsyah, M., &Syamsuddin, R. (2019). Corporate governance mechanism on firm performance through working capital management efficiency (WCME). DOI:10.21474/IJAR01/8515
Rossi, F., & Cebula, R. J. (2016). Debt and ownership structure: evidence from Italy. Corporate Governance, 16(5), 883-905.
Sar, A. K. (2018). Impact of corporate governance on sustainability: A Study of Indian FMCG industry. Academy of Strategic Management Journal, 17 (1), 1 – 10.
Sarpong-Danquah, B., Gyimah, P., Afriyie, R.O., & Asiamah, A. (2018). Corporate Governance and Firm Performance: An Empirical Analysis of Manufacturing Listed Firms in Ghana. Accounting and Finance Research, 7(3), 111-118.
Shahbaz, M., Karaman, A. S., Kilic, M. & Uyar, A. (2020). Board attributes, CSR engagement, and corporate performance: What is the nexus in the energy sector? ScienceDirect,
Shleifer, A. & Vishny, R. W. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737-783.
Vasiu, D. E. & Ilie, L. (2018). Sustainable growth rate: An analysis regarding the most traded companies on the Bucharest Stock Exchange.
Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 185-211.
Yunos, R. M., Ahmad, S. A. & Sulaiman, N. (2014). The influence of internal governance mechanism on accounting conservatism. Procedia - Social and Behavioural Sciences, 164, 501-507.
Zabrie, S.M., Ahmad, K., & Wah, K.K. (2016). Corporate governance practices and firm performance: evidence from top 100 public listed companies in Malaysia. Procedia Economics and Finance, 35, 287–296.
Zahra, S. and Pearce, J. (1989). Boards of directors and corporate financial performance: A review and integrative model. Journal of Management, 291-334.
Zare, M., Moeinadin, M., & Heyrani, F. (2014). Investigating the relationship between board characteristics and the sustainable development of companies listed at Tehran stock exchange. International Journal of Academic Research in Business and Social Sciences, 4(6), 384 – 401
Business Administration and Business Economics