IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 9 NO. 11 2023
DOI: https://doi.org/10.56201/ijssmr.v9.no11.2023.pg138.161

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Corporate Board Characteristics and Performance of Non-Financial Firms in Nigeria

Lawrence, U. Egbadju

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Abstract

This study investigates if there is any relationship between certain corporate board characteristics and financial performance of non-financial listed firms in Nigeria. It uses secondarily sourced panel data over the period from 2005 to 2020 of 76 such firms listed on the floor of the Nigerian Exchange Group (NXG). The generalized method of moments (GMM) results reveal that while board size(BS), board compensation(BC), board meetings(BM) and board members with military experience(BME) are positively significant with performance; board independence(BI), board gender diversity(BGD), board national diversity(BND), board tribal diversity(BTD), board busyness(BB), board members’ education level(BE) and board foreign directors(BFD) are negatively significant with performance but board shareholding or ownership(BSH) is insignificant. All the control variables (leverage, market–to-book ratio, firm size, year fixed effect dummy as well as the industry sector fixed effect dummy) are statistically significant. This study concludes with some recommendations.

keywords:

Board Characteristics, Firm Performance, Quoted Non-Financial Firms, GMM, NXG.

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References:

Abdurrashid, I., Adekanmi, A. D., Oladipo, O. N. & Rildwan, O. B. (2023). Corporate
governance and firm performance: evidence from deposit money bank in Nigeria. E u r o
E c o n o m i c a, 1(42), 138-151.

Adeola, F. K., Zubairu, A. D. & Ame, J. O. (2023). Effect of board characteristics on capital
structure decision of listed insurance firms in Nigeria.
International Journal of Education, Business and Economics Research (IJEBER)
3(3): 37-53.

Al-Absy, M. S. M. & Nada, H. A. (2023). The interaction effect of nomination committee’s
effectiveness on board of directors’ characteristics and firm performance. Administrative
Sciences 13: 135

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