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. 10 2024
DOI: 10.56201/jafm.v10.no10.2024.pg174.202

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Nexus Between Board Characteristics and Firm Performance of Quoted Commercial banks in Nigeria

Ime Isaiah Udoh, Gospel J. Chukwu Chukwu Ogwo, Mrs Womuru Okitche, Blessing Nkechinyere, Peter Chukwutem Chegwe

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Abstract

The study empirically explored the nexus between board characteristics and firm performance in quoted Commercial banks in Nigeria. The population of the study made up of 23 listed banks in the Nigerian stock exchange in 2022. The study adopts judgemental sampling technique to select 10 quoted commercial banks as the sample study. Ex-post facto research design was implemented and secondary data were obtained from quoted commercial banks for the period of five years (2018-2022), making up 50 firm-year sample observations. The study adopts descriptive statistics for univariate analysis, bivariate for correlation analysis, while the hypotheses were tested using the multiple regression analysis based on Excel Analytical package 2018 and SPSS version 20. The findings are as follows: the first model shows that board diligence and board gender diversity are positively, statistically and significantly correlated with earning per share in commercial banks in Nigeria. The second model indicates that board diligence and board size are positively, statistically and significantly associated with share price in commercial banks in Nigeria. The third model showed that board gender diversity is statistically and significantly related with Net asset in commercial banks in Nigeria.The study therefore, concludes that there is a statistically significant relationship between board characteristics and firm performance in quoted commercial banks in Nigeria. The study therefore enables an understanding on the nature of relationship existing between board characteristics and firm performance of quoted commercial banks in Nigeria. The study recommends among others, a cordial relationship among the board, shareholders as well as other stakeholders for high corporate performance. Gender balance in the board structure is recommended for blending of gender expertise in the overall management task and to increase board’s decision quality in commercial ban

keywords:

Board characteristics, firm performance, board size, board diligence, board

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