Effect of Board Characteristics on Financial Performance of Listed Banks In Nigeria

ABSTRACT

This study examines the effect of board characteristic on financial Performance of listed services company in Nigeria for the period 2013-2017. Ex-post Facto research design was adopted. Board characteristics variable used include size, independence, gender diversity and board meeting. Data were extracted from the annual reports of the listed services company. Multiple panel regression analysis was used to analyze the data. The result shows that Board characteristics have significant effect on the financial Performance of listed services company in Nigeria. Specifically Board gender diversity have significant positive effect, and board meetings have significant negative effect on board characteristic while board size have insignificant negative effect on financial Performance while board independence have  insignificant negative effect on financial Performance. Based on the findings, This study therefore, recommends that, the regulators of deposit money banks in Nigeria should increase surveillance and supervision to ensure proper overall risk on management that could safeguard the interest of all stakeholders and the reputations of the banks, The regulators and the managements of the deposit money banks in Nigeria should emphasize on the optimal size of the board. Because of the evidence that the size helps bring more experts into the board that could give proper judgments with regard to risk management. The study also recommends that, the board of directors of the deposit money banks in Nigeria should have composed of more independent/non-executive directors who are experts in the financial services industry. This could help in bringing more independent and expert based judgments and opinions with regard risk management and the overall performance of the banks.