BOARD DIVERSITY AND FIRM FINANCIAL PERFORMANCE IN NIGERIA

ABSTRACT

The broad objective of this study is to empirically determine board diversity and firm financial performance in Nigeria. The scope of this study is for a period covering selected manufacturing companies in Nigeria from 2018 to 2022 using the Nigeria Exchange Group (NGX) as a basis of sampling selection. The data used was obtained mainly from secondary sources. The secondary data relate to relevant information that depicts board diversity and firm financial performance. This was made up of information relating to board age, board gender, board educational background, board ethnicity and firm financial performance. In this study, data were extracted from the annual reports and account of these seventeen (17) fast moving consumers goods, companies quoted on the Nigeria Exchange Group used as case study within the period of five (5) years ranging from 2018-2022. The findings provide valuable insights for policymakers, corporate leaders, and stakeholders. Firstly, the study reveals that board age has a statistically significant positive impact on firm financial performance. The study therefore made the following recommendations that companies should aim to achieve a balanced mix of experienced and younger directors on boards to leverage diverse perspectives and experiences, there is need to implement policies and practices to increase the representation of women on boards, fostering inclusivity and broader corporate governance objectives. The following recommendations are made to achieves the objective. There should be constant review of existing tax laws of one year. There should be stringent penalty imposed on any corporate body who include in any form of VAT malpractice irrespective of states. In conclusion, this study sheds light on the relationships between board characteristics and firm financial performance in the quoted manufacturing industry in Nigeria.