Research Purpose: In light of the critical role corporate governance plays in financial health, this study investigates the relationship between corporate governance factors and investing cash flows in consumer goods firms in Nigeria from 2012 to 2021.
Methodology: The study employed an ex-post-facto research design, analysing secondary data from annual reports and accounts of sampled firms. Covariance techniques were used to test the hypotheses.
Findings: The analysis revealed a strong positive relationship between corporate governance factors (board size, board independence, and board meetings) and investing cash flows in consumer goods firms.
Conclusion: Good corporate governance significantly enhances cash generated from investing activities in Nigeria's consumer goods sector. Effective governance practices lead to better investment decisions and increased financial performance.
Recommendations: Consumer goods firms should limit board size to no more than fifteen members to improve decision-making efficiency. Increasing the proportion of independent board members to at least 80% can help mitigate agency problems. Additionally, firms should conduct board meetings quarterly to ensure thorough analysis and informed investment decisions.