Board Characteristics on Firm Performance of Quoted Financial Services Companies in Nigeria
Authors: Ilaboya, O. J., Obaretin, O.
Journal: International Journal of Advanced Finance and Accounting (IJAFA), ISSN 2765-8457
Citation: IJAFA 2(9), 2022-01-21.
DOI: 10.5901/mjss.2015.v4n1p283
PDF: Download full-text PDF
Type: Original Research
Abstract
The research investigated the effect of Board Characteristics on Firm Performance of Financial Services companies in Nigeria. Secondary data were obtained from published financial reports and accounts of active Financial Services companies listed on the Nigerian Exchange Limited (NGX) for ten years (2011 – 2020). The independent variables are Board Size, and Board Remuneration, while the dependent variable Firm Performance was proxied as Tobin Q (TOBQ). Null hypotheses were formulated for the study and secondary data was obtained from the financial statements of the companies. The data were analyzed using descriptive analysis, correlation matrix, and regression analysis. The Random Effects Generalized Least Square (GLS) regression result revealed that Board Size (BODS) and Board Remuneration (DRSA) all have significant effect on firm performance of Financial Services companies in Nigeria at 5% level of significance. Though Board Size (BODS) has an inverse effect. This research recommends that board diversity should be optimised with board size as this would scale up firm performance whilst optimizing resources
Keywords
Board Characteristics, Generalized Least Square (GLS), Financial Services Authorship Ofor, T.N. Ph.D and Ibida, Nneka Jane-Frances | Full PDF
Full Text
The research investigated the effect of Board Characteristics on Firm Performance of Financial Services companies in Nigeria. Secondary data were obtained from published financial reports and accounts of active Financial Services companies listed on the Nigerian Exchange Limited (NGX) for ten years (2011 – 2020). The independent variables are Board Size, and Board Remuneration, while the dependent variable Firm Performance was proxied as Tobin Q (TOBQ). Null hypotheses were formulated for the study and secondary data was obtained from the financial statements of the companies. The data were analyzed using descriptive analysis, correlation matrix, and regression analysis. The Random Effects Generalized Least Square (GLS) regression result revealed that Board Size (BODS) and Board Remuneration (DRSA) all have significant effect on firm performance of Financial Services companies in Nigeria at 5% level of significance. Though Board Size (BODS) has an inverse effect. This research recommends that board diversity should be optimised with board size as this would scale up firm performance whilst optimizing resources