CORPORATE GOVERNANCE ATTRIBUTES AND FINANCIAL PERFORMANCE: EVIDENCE FROM ELECTRICITY DISTRIBUTION COMPANIES (DISCOS) IN NIGERIA

The unsatisfactory performance and revenue shortfall of Electricity Distribution Companies (DisCos) in Nigeria have generated a lot of concern among stakeholders. Therefore, the study examines effect of corporate governance attributes on the financial performance of Electricity Distribution Companies (DisCos) in Nigeria. The study utilized a sample of eleven (11) electricity distribution companies covering a 10-year period, starting from 2013 to 2022 with 110 observations using Ordinary Least Square (OLS). Secondary data were extracted from annual reports of the companies. The regression results showed that board independence has a statistically significant positive relationship with Return on Equity (ROE), while board size and political connection have statistically significant negative relationship with ROE. Based on the findings, the study recommended that the board of DisCos emphasize the skillset and expertise of outside directors, as this can make significantly contribute to companies’ performance.