CORPORATE BOARD DIVERSITY AND FIRM PERFORMANCE

ABSTRACT

Corporate board diversity has gained increasing attention in corporate governance due to its potential impact on firm performance. This study examines the relationship between board diversity—specifically age, gender, and ethnic diversity—and firm performance in the Nigerian financial industry. The study is anchored in Resource Dependency Theory, which posits that board members provide strategic resources that enhance organizational outcomes. Despite global progress in fostering diversity, Nigerian corporate boards remain predominantly male-dominated, with limited representation of women and minority groups. Using a quantitative research approach, this study analyzes secondary data from publicly listed firms on the Nigerian Stock Exchange (NSE). A sample of 15 companies from five different sectors—financial services, telecommunications, oil and gas, consumer goods, and manufacturing—is selected, covering a four-year period (2020–2024). The study employs regression analysis to investigate the impact of board diversity on firm performance indicators such as Return on Assets (ROA) and Return on Equity (ROE). The findings of this study will provide empirical insights into how gender, age, and ethnic diversity influence firm performance in Nigeria. The results are expected to inform corporate governance practices, helping firms optimize board composition for improved financial performance and strategic decision-making. Additionally, the study will contribute to policy discussions on diversity and inclusion in Nigeria’s corporate landscape. By addressing gaps in the existing literature, this research offers practical recommendations for regulators, investors, and corporate leaders on fostering inclusive and effective board governance.