Corporate Governance and Net Profit Before Tax of Quoted Food and Beverage Firms in Nigeria


  • Owolabi, S. A. Babcock University, Ilishan-Remo, Ogun state, Nigeria
  • Ajike, E. O. Babcock University, Ilishan-Remo, Ogun state, Nigeria
  • Folorunso, O. O. Babcock University, Ilishan-Remo, Ogun state, Nigeria



The food and beverage industry is crucial to human existence as it provides sustenance and nutrition necessary for survival. The industry encompasses a wide range of activities, including the production, processing, packaging, distribution, and consumption of food and beverages. Despite its importance, studies have shown that quoted food and beverage firms are faced with the struggle to maintain substantial level of net profit before tax which are likely due to weak corporate governance (ownership structure, board composition, board diversity, CEO tenure, and board size).  This study therefore, investigated the effect of corporate governance on earning per share of quoted food and beverage firms in Nigeria. 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 revealed that corporate governance had significant effect on net profit before tax (Adj.R2 = 0.23, F (5, 106) = 6.54, p < 0.10).  The study concluded that corporate governance enhanced return on asset of quoted food and beverage firms in Nigeria. 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.

Key words: Corporate Governance, Net Profit before Tax, Food and Beverage Firms

Author Biographies

Owolabi, S. A., Babcock University, Ilishan-Remo, Ogun state, Nigeria

School of Management Sciences, Department of Business Administration and Marketing

Ajike, E. O., Babcock University, Ilishan-Remo, Ogun state, Nigeria

School of Management Sciences, Department of Business Administration and Marketing

Folorunso, O. O., Babcock University, Ilishan-Remo, Ogun state, Nigeria

School of Management Sciences, Department of Business Administration and Marketing


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How to Cite

Owolabi, S. A., Ajike, E. O., & Folorunso, O. O. (2023). Corporate Governance and Net Profit Before Tax of Quoted Food and Beverage Firms in Nigeria. Journal of Strategic Management, 7(3), 63–77.