BOARD CHARACTERISTICS AND FIRM FINANCIAL PERFORMANCE: AN EMPIRICAL INVESTIGATION OF NIGERIAN LISTED FIRMS

Abstract

This paper investigated the extent to which, if any, board characteristics are associated with the

financial performance of publicly traded entities in Nigeria. This study sourced data from

corporate disclosures made by selected publicly traded firms from 2011 to 2021. The ex-post

facto research design was used in this research. The estimation technique used to examine to

what extent financial performance is affected by board characteristics of the selected firms was

panel regression analysis. The study's findings documented that board expertise has a significant

positive effect (at 5% significance) on the financial performance of the investigated firms.

Conversely, board tenure, independence and size are said to have a significant negative effect on

financial performance (-0.00904, -0.00636, & -0.16209) at 1%, 5% and 10% conventional levels

of significance. This research concluded that members with expertise in finance or accounting

enhanced better financial performance. Therefore, this research recommended that the board

size be composed following levels of activities and scope of operation of the firms. Furthermore,

non-executive directors should oversee the operational activities to bridge the communication

gap.