Corporate Governance and Market Value of Firms in the Nigerian Chemical and Paints Industry

This study examines the relationship between corporate governance and market value of firms in Nigerian chemical and paints industry. A sample of six companies was used for the period of 2004 to 2012. The study uses board composition as corporate governance attribute while market price of shares was used to proxy market value of equity. Using correlation and multiple regression analysis, the results of the study shows that board composition (BC) has significant but negative impact on market value of equity implying that increasing the number of independent directors on the board decreases the market value of equity. This suggests that optimum number of directors with requisite knowledge and expertise should be maintained.