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Abstract

This study investigates the relationship between internal control and corporate governance in publicly listed Nigerian companies. Using a robust ex-post facto research design and panel data analysis, the study examines how various components of internal control systems influence corporate governance. Data from 30 sampled companies across ten sectors were analysed, spanning an 11-year period from 2012 to 2022, resulting in 300 panel data observations. The analysis method effectively accounts for unobserved individual-specific effects, enhancing the reliability of the findings. Initially, the study found no statistically significant connection between total internal control and corporate governance. However, upon a deeper exploration of specific internal control components, significant positive associations were identified. A strong control environment and effective risk assessment were found to significantly enhance corporate governance. These components exhibited substantial positive impacts, indicating their importance. Although a positive relationship between effective control activities and corporate governance was observed, it did not reach statistical significance. Similarly, the study revealed an insignificant positive correlation between effective information and communication and corporate governance in Nigeria. Notably, effective monitoring had a substantial and statistically significant positive influence on corporate governance. These findings provide valuable insights for practitioners, policymakers, and academics looking to strengthen corporate governance within the Nigerian business landscape.