Abstract:
This research paper investigated the relationship between corporate governance and shareholders' wealth maximization among quoted manufacturing companies in Nigeria. In order to achieve the purpose of the study, three hypotheses were proposed and data collected from the annual reports and accounts of a sample of twenty manufacturing companies for a period of seven years spanning 2011 to 2017. While corporate governance was measured using audit committee size, board size and board composition, shareholders' wealth maximization was measured using market value. The data collected for the study were analyzed using multiple regression analyses. The research findings showed that an independent audit committee has a positive but statistically insignificant effect on shareholders wealth. The findings also showed that there is a positive and statistically significant relationship between the numerical size of the board of directors and shareholders' wealth maximization. Also, board composition had a positive relationship with shareholders' wealth maximization. From the findings, it was concluded that audit committee independence is not an important determinant of shareholders' wealth maximization. On the other hand, board size plays an important role in shareholders' wealth maximization. Similarly, the board of directors dominated by independent members also plays an important role in shareholders wealth maximization. It is recommended among other things that shareholders push for the increase of independent members in the board of directors.