Directors Tunneling and Performance of Quoted Consumer Goods Firms in Nigeria

The study examined the relationship between directors tunnelling and performance of quoted consumer goods firms in Nigeria. To achieve the objective, directors tunnelling key proxy variables were used in the study, namely board of director’s pay and Chairman’s pay while performance which is the dependent variable is represented by earnings per share. Fifteen (15) firms were purposively selected from the Nigerian Exchange Group. The two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using Pearson correlation matrix and Ordinary Least Square Method. Ex-post facto research design was adopted and data for the study were obtained from the Nigerian Exchange Group Factbook and the published annual financial reports of the selected quoted consumer goods firms on Nigerian Exchange Group with data spanning from 2014 - 2021. Analyses of data indicate that both the board of director’s pay and Chairman’s pay were negative, and had insignificant effect on performance of quoted consumer goods firms in Nigeria at 5% level of significance. The study, therefore among others recommends that due to the negative relationship chairman’s pay has with performance of consumer goods firms in Nigeria, like in the board of director’s pay, we therefore suggest that proper control should be emphasized on the chairman’s pay by the shareholders of consumer goods firmsin order to prevent fraud.