IIARD International Institute of Academic Research and Development

WORLD JOURNAL OF FINANCE AND INVESTMENT RESEARCH (WJFIR )

E-ISSN 2550-7125
P-ISSN 2682-5902
VOL. 7 NO. 3 2023
DOI: https://doi.org/10.56201/wjfir.v7.no3.2023.pg56.79

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Board Attributes and Financial Performance of Quoted Manufacturing Firms in Nigeria

Davies, Stanley Diepiriye (FCA)

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Abstract

This study examined the effect of board attributes and the financial performance of quoted manufacturing firms in Nigeria. Panel data were sourced from financial statement of the quoted firms from 2011 to 2020. Market value and equity value were modeled as a function of board size, board composition, board independence and board gender diversity. Panel data Ordinary least square method was used as data analysis technique. The study found that 50.1 percent variation in return on equity and 61 percent variation in profit after tax of the quoted manufacturing firms can be traced to variation in board attributes. findings have proved that board size have positive effect on the return on equity and profit after tax, board independence has negative effect on financial performance, board gender diversity has negative effect on financial performance, while board composition has positive effect on financial performance. The study concludes that there is no significant relationship between board composition and return on equity of quoted manufacturing firms in Nigeria, no significant relationship between board composition and profit after tax, no significant relationship between board independence and return on equity, significant relationship between board independence and profit after tax, there is significant relationship between board size and return on equity there is no significant relationship between board size and profit after tax and there is no significant relationship between board gender diversity and profit after tax of quoted manufacturing firms in Nigeria. the study recommend that size of the board appointed as non-executive directors who are independent of management and the activities of the firm, and who at the same time will bring in experience and expertise that can positively improve its relationship on financial performance.

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