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. 9 2024
DOI: 10.56201/jafm.v10.no9.2024.pg283.298

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Moderating Effect of Firm Size on Board Structure and Performance of Firms in African Stock Market

ORIFE, Catharine Ogheneovo & IFURUEZE, M. S. Ph.D.

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Abstract

This study invested the moderating effect of firm size on board structure and performance of firms in African stock market. Two specific objectives were established at first to ascertain the effect of board meeting and board independence on return on assets of the oil and gas firms from African stock market. On the other hand, the study tested the moderating effect of firm size on relationship between hypotheses actually synchronize with the objectives of the study. The research adopted descriptive study of ex-post facto and collected secondary data from the annual reports of firms covering 2012 to 2022. Sample of six firms were purposely selected from the total population of the ten oil and gas firms listed on African stock market. Panel regression technique was applied in data estimation, whereas Hausman test assisted the study to selected random effect result against fixed effect result. The empirical findings show that; board meeting and board independence have no significant effect on return on assets of the sampled oil and gas firms. Moreover, Firm size does not have significant moderating effect on the relationship between board meeting and firm performance of oil and gas firms listed on African market. Meanwhile, Firm size has significant moderating effect on the association between board independence and financial performance of oil and gas firms sampled at 1% level; Hence, the study recommends amongst others that The shareholders should appoint a good proportion of non-executive directors on the board to enable them engage the CEO fearlessly as to reduce the selfish interest of the CEO and executives directors.

keywords:

Board independence, Board meeting, Board structure, Firm size and performance

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