Chief Executive Officer (CEO) Duality and Financial Performance of Consumer Goods Firms in Nigeria

Odey; Ferdinand Ite Ph.D; Egbai; Emmanuel Otei; Ph.D; . Etim Bassey Effiom

doi:10.56201/jbae.vol.12.no6.2026.pg25.32

📄 Download Paper

Chief Executive Officer (CEO) Duality and Financial Performance of Consumer Goods Firms in Nigeria

Odey, Ferdinand Ite Ph.D, Egbai, Emmanuel Otei, Ph.D, . Etim Bassey Effiom

Abstract

This study investigates the nexus between Chief Executive Officer duality and the financial performance of consumer goods companies listed on the Nigerian Exchange Group . CEO duality, defined as the practice where one individual occupies the roles of both the CEO and the Chairman of the Board, remains a contentious issue in corporate governance. Drawing on agency and stewardship theories, this study employs an ex-post facto research design to analyze data from selected consumer goods firms. The data were analyzed using the pooled, fixed and random effects, and Hausman test. The results indicate that the impact of CEO duality on firm performance is multifaceted, often mediated by board independence and ownership structure. The study concludes that while duality may offer unified leadership, it often compromises independent oversight, potentially undermining long-term financial performance. Recommendations include strict adherence to the Nigerian Code of Corporate Governance (2018) regarding the separation of roles to enhance transparency and accountability.

Keywords

CEO dualityconsumer goodsfixed effectHausman testrandom effect.

References

Ariyibi, O. A., Odetayo, T. A., & Adeyemi, A. A. (2021). Corporate governance and firm performance of listed consumer goods companies in Nigeria. International Journal of Accounting and Finance Research, 7(3), 112–129. Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder return. Australian Journal of Management, 16(1), 49–64. Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325. Financial Reporting Council of Nigeria. (2018). Nigerian Code of Corporate Governance . Hsu, S., Lin, S., Chen, W., & Huang, J. (2021). CEO duality, information costs, and firm performance. The North American Journal of Economics and Finance, 55, 101011. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. Odey, F. I., Owan, J. O. & Owan J. N. (2023). Financial indicators and stock market performance in Nigeria. Global Journal of Arts, Humanities and Social Sciences, 11(5), 53-69. Ogbechie, C. & Koufopoulos, D. N. (2021). Corporate governance practices in Nigeria. Corporate Governance in Emerging Markets, 127, 373-394. Onyegiri, I. C., Nwaorgu, I. A., & Udeh, S. N. (2024). Effect of board characteristics on financial performance of listed consumer goods firms in Nigeria (2015–2024). Nigerian Journal of Financial Management, 9(2), 88–105. Ozah, A. N. (2025). CEO duality and ownership as determinants of real earnings: Evidence from some emerging economies. International Business Review, 26 (6), 1100-1113. Shahid. A., Muhammad, A. N. & Muhammad, I. A. (2022). How” and “When” CEO Duality Matter? Case of a Developing Economy. Sage Journal. https://doi.org/10.1177/21582440221116113. Taura, N. A., Baffa, A. M. & Suleiman, T. (2025). Chief Executive Officer characteristics and financial reporting quality: Evidence from quoted consumer goods firms in Nigeria. International Journal of Finance and Management. Udah, E. B. & Odey, F. I. (2016). Real exchange rate misalignment and economic performance in Nigeria. Global Journal of Social Sciences, 15, 13-25. Yu, M. (2022). CEO duality and firm performance: A systematic review and research agenda. European Management Review, 20, 346–358. Yusuf, A. (2025). CEO power and firm performance: The mediating role of board independence. Global Management Sciences Review, 14. 1-31. Umoru, D., Obeten, U. B., Odey, F. I., Bassey, C. E., Itita, V. E., Igbinovia, B., Momoh, A. O., Mbum, A. P., Osam, E., Bassey, A. E., Owan J. E. & Ugbaka, M. A. (2026). Macroeconomic strategies for Nigeria's agenda 2050: Assessing the role of exchange rate thresholds in shaping investment and price stability. Journal of Daoist Studies, 19(S3), 334–379.

Chief Executive Officer (CEO) Duality and Financial Performance of Consumer Goods Firms in Nigeria

Abstract

Keywords

References

More Articles from JOURNAL OF BUSINESS AND AFRICAN ECONOMY