EFFECT OF CORPORATE GOVERNANCE ON BUSINESS FINANCIAL PERFORMANCE OF PROFIT ORIENTED ORGANISATIONS IN SOUTH WESTERN NIGERIA

The concept of corporate governance has attracted considerable attention, domestically, in recent years. Previous research, largely conducted using international data, has suggested that better governed firms outperform poorer governed firms in a number of key areas. Recent global events concerning corporate failures have put back on the policy agenda and intensified debate on the efficacy of corporate governance mechanisms as a means of increasing firm financial performance. This study examined the effect of corporate governance on business financial performance of profit-oriented organizations in South Western Nigeria. Five hundred and twenty five staffs of fifty selected profit oriented organizations in South Western States of Nigeria were randomly selected for the study. Two hypotheses were tested in the study. Findings from the study revealed that the foundation for good corporate governance is sound business strategy along with competent and responsible management term. Thus, it was recommended that corporate governance must take into the account the drivers of reforms positively