BOARD SIZE, BOARD GENDER DIVERSITY AND FIRMS’ FINANCIAL PERFORMANCE

Authors

  • Folashade Olufunke Obaje Prince Abubakar Audu University, Anyigba, Kogi State, Nigeria Author
  • Abdulmumuni Ogirima Prince Abubakar Audu University, Anyigba, Kogi State, Nigeria Author

Keywords:

Board Size, Board Gender Diversity, Firm Size, Agency Theory, Financial Performance

Abstract

The efficiency of the board of corporate organizations is important to the smooth running of the organization and eventually results in good corporate performance. Given that board efficiency is subject to its structure, it becomes imperative to empirically ascertain the relationship between board attributes such as board size and board gender diversity and firms’ performance. This study examines board size, board gender diversity and financial performance of quoted deposit money banks in Nigeria from 2014 to 2020. The population comprises all 11 quoted deposit money banks in Nigeria, while simple random sampling technique was used to arrive at a sample size of eight quoted deposit money banks. The hypotheses were tested using Ordinary Least Square regression model after conducting diagnostic tests. Findings revealed that board size has an insignificant negative effect on return on asset of deposit money banks in Nigeria, while board gender diversity has a significant negative effect on return on asset. The study recommended that deposit money banks in Nigeria should maintain a smaller board size and appropriate gender composition to enhance financial performance.

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Published

2022-12-01

Issue

Section

Articles