TY - JOUR AB - Purpose This study investigates the impact of corporate governance (CG) mechanisms with inclusion of compliance and diligence index on corporate performance (CP) of firms in Nigeria and Ghana. It further examines the moderating effect of financial distress on the relationship between CG and CP.Design/methodology/approach The study used panel data of 102 nonfinancial listed firms of Nigeria and Ghana stock exchange for the period 2012–2016 with total observation of 510. The study first used OLS in estimating the influence of CG mechanisms on CP. Due to multicollinearity in the independent variables, ridge regression was employed.Findings It was revealed that ownership structure index and board compliance and diligence index, board size, board disclosure, ownership structure, shareholders' right and board compliance and diligence index had positive influence on ROA and ROE. Growth of Tobin's Q depends on board procedure and board compliance and diligence index. Also, financial distress (ZFS) negatively moderates the relationship between board structure index, board disclosure index, board procedure index, shareholders' right and performance (ROA and ROE) but negatively moderates between ownership structure index and Tobin's Q.Practical implications This study provides interesting findings to policymakers in full implementation of CG codes as stated by OCED (2015) by West African firms with greater emphasis on compliance and diligence index since it positively influences all CP measures.Originality/value The study provides evidence of the importance of the introduction of the new index: compliance and diligence, which looks at disclosure of CSR activities. This has been overlooked by most researchers especially in Africa in assessing quality CG mechanisms. VL - 70 IS - 8 SN - 1741-0401 DO - 10.1108/IJPPM-01-2020-0020 UR - https://doi.org/10.1108/IJPPM-01-2020-0020 AU - Coleman Martha AU - Wu Mengyun PY - 2020 Y1 - 2020/01/01 TI - Corporate governance mechanisms and corporate performance of firms in Nigeria and Ghana T2 - International Journal of Productivity and Performance Management PB - Emerald Publishing Limited SP - 2319 EP - 2351 Y2 - 2024/03/29 ER -