IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 4 2024
DOI: https://doi.org/10.56201/jafm.v10.no4.2024.pg120.142

---

Board Expertise and Firm Performance of Listed Deposit Money Banks in Nigeria

Okolie, Fidelis Oguguo, Ukoh, Uzoamaka Maureen, Nduokafor, Christian Ogochukwu

---

Abstract

This paper examined the effect of board expertise on financial performance of ten sampled commercial banks in Nigeria from 2013 to 2022. The regressor is board expertise measured by accounting expertise, managerial expertise, and legal expertise. The study included both firm size and financial leverage into the model as control variables. Data for the study were drawn from the annual reports of the sampled commercial banks within the reviewed periods. Meanwhile, the panel regression approaches was adopted since the variables exhibited both time series and cross sectional characteristics. The Hausman test confirmed that, the Random effect model is the most efficient model for the study. Further, accounting expertise, managerial expertise, and legal expertise exerted positive significant effect on sampled commercial banks in Nigeria. Consequently, the paper concludes that, accounting, managerial and legal expertise is major positive predictors of the financial performance (cum ROI) of sampled commercial banks within the reviewed periods. Hence, the paper submits that, directors with accounting and legal background should be given more opportunities to become members of the board room considering the instrumental roles they play in the Nigerian banking industry. Lastly, those at the management cadre should be given more opportunity to up-skill since managerial expertise serve as one of the most critical factors which influences the performance of the sampled commercial banks in a positive light.

keywords:

Board Expertise, accounting expertise, managerial expertise, and legal expertise, Firm Performance

---

References:

Adnan, M. F., Sabli, N., Rashid, M. Z. A., Hashim, A., Paino, H., & Abdullah, A. (2016). The
impact of educational level of board of directors on firms’ performance. In Regional
Conference on Science, Technology and Social Sciences Business and Social Sciences (pp.
37-48). Springer Singapore.

Akinwole, B. D., & Ajide, F. M. (2020). Board Characteristics and Firm’s Financial Performance
in Nigeria. Department of Economics, the University of Ilorin working paper/05/2020.

Arnold & Porter. (2013). The Role of Lawyers in the Fight Against Corruption A Summary:
Report. Thomson Reuters Foundation: London, UK

DOWNLOAD PDF

---

Back