BOARD ATTRIBUTES AND FIRM PERFORMANCE

ABSTRACT

This study investigates the relationship between board attributes and firm performance among publicly listed companies on the Nigerian Stock Exchange (NSE). Adopting a longitudinal research design, data were collected for a 5-year period from 2018 to 2022 from financial reports and corporate governance disclosures. The analysis focused on board attributes including board size, audit committee size, board independence, and board gender disparity, with firm performance measured by return on assets (ROA), return on equity (ROE), and earnings per share (EPS). The study found no significant relationship between board size and firm performance, indicating that merely increasing the number of board members does not improve financial outcomes. Conversely, a significant positive relationship was observed between audit committee size and firm performance, suggesting that larger audit committees are associated with better financial results. Board independence also showed a significant positive impact on firm performance, emphasizing the importance of independent directors in enhancing company success. However, no significant association was found between board gender disparity and firm performance, implying that gender disparity alone does not directly influence financial outcomes. These findings support theoretical frameworks such as Agency Theory and Resource Dependence Theory, highlighting the importance of effective governance structures in promoting organizational success. Recommendations include enhancing audit committee functions, increasing board independence, optimizing board size, promoting gender diversity, and providing continuous training for board members to enhance their governance capabilities. Implementing these strategies can help optimize governance structures and potentially enhance firm performance, contributing to the overall success and sustainability of the organization