Corporate Governance Diverse Characteristics and Performance of Quoted Non-Financial Firms in Nigeria

Abstract

This study investigates if there is any relationship between certain board characteristics and financial performance of listed firms in Nigeria. It uses secondarily sourced panel data over the period from 2005 to 2020 of 76 firms listed on the floor of the Nigerian Exchange Group (NXG). The generalized method of moments (GMM) results reveal that while board foreign directors(BFD), board members’ education level(BED) and age diversity(AGD) are positively significant with performance; board tribal diversity(BTD), board gender diversity(BGD), board financial expertise (BFE), audit committee gender diversity.(ACGD) and CEO gender diversity(CEOGD) are negatively significant with performance while board national diversity(BND) and Audit committee financial expertise(ACFE) are insignificant. For the control variables, while leverage (LEV) and market–to-book ratio (MTB) are insignificant; firm size (SIZE) is positively significant but firm age (FAGE) is negatively and statistically significant. This study concludes with some recommendations.

Keywords

References