Corporate governance and money laundering in Nigerian listed companies

Abstract

This study investigates the impact of corporate governance mechanism on money laundering operations in publicly listed firms in Nigeria, emphasising the efficacy of governance measures and the mediating function of internal audits. The study employed purposive sampling to analyse 177 firms listed on the Nigerian Stock Exchange, collecting data from 50 respondents in both financial and non-financial sectors. The methodology utilised descriptive statistics and Partial Least Squares Structural Equation Modelling (PLS-SEM) for analysis. The results indicate extensive money laundering practices among Nigerian publicly listed companies and highlight critical elements that enhance corporate governance frameworks: structural efficacy, board autonomy, transparency in financial reporting, and a stakeholder-oriented board culture. These factors substantially augment the capacity of internal audit functions to combat money laundering. The research illustrates that the integration of strong corporate governance and efficient internal audit systems is essential for identifying and preventing money laundering in Nigeria's publicly traded companies.