ABSTRACT
The broad objective of this study is to examine the relationship between board of directors’ characteristics and firm performance in Nigeria. Specifically, the study attempts to explain the behaviours of board size, board independence, board diligence, board gender diversity, board financial expertise and their individual impacts on firm performance (proxy using return on assets0. Dissimilar to other previous studies in this area, the study also investigates the role of industry type as a moderator on the relationship between the independent variables and film performance proxy.
The study adopted the ex-post facto research design. Secondary data were utilized as sourced from the sample size of one hundred and nineteen (119) companies listed on the Nigerian Stock Exchange between years 2012 to 2017. Methodologically, the study employed two (2) multiple regression models. The analyses involve the application of descriptive statistics, correlation matrix, panel data regression (model one) and moderated multiple regression (for model two).
The results showed that board size and board diligence have inverse significant relationship with firm performance while board independence, board financial expertise and board gender diversity have positive non-significant relationships with firm performance. The result further shows that the relationship between the board of directors’ characteristics and financial performance is not moderated by industry type. The study recommends, among others, that regulatory policies regarding the composition and structure of board of directors should not be sectionalized as its implicational effect on firm performance may not differ irrespective of the company type.
