Corporate Board Diversity and Firm Financial Performance: New Evidence from Nigeria

Posted: 11 Jun 2021

Date Written: June 1, 2021


The bourn of this research was to study the influence of corporation governance characteristics on monetary performance of registered firms in Nigeria. The research intended to answer two study queries: what is the relationship between boards of directors’ characteristics (board independence, board size, and board nationality) of public listed companies in Nigeria and the firms’ financial performance? And what impact does gender diversity among boards of directors’ of Nigerian public listed companies have on firms’ financial performance?

The research applied the panel study designs while the longitudinal survey study method was made use of for collection of statistics. The research depended on secondary sources of statistics to collate figures for the variables, and embraced the purposive sampling procedure. The ideal populaces for the research were manufacturing firms registered with the Nigeria Stock Exchange (NSE). The specimen size for the research was 20 manufacturing firms. The statistics was collated from secondary sources of the annual report and accounts, fact books, and publications of the Nigerian stock exchange (NSE). The Hausman test was carried out to ascertain whether to apply Fixed Effects or Random Effects regression. It tested the null proposition to certify that the coefficients predicted by the random effects approximator are one and the same as the coefficients predicted by the unswerving fixed effects approximator.

The correlation analysis indicated that the correlation between return on asset (firm financial performance), board size, foreign board member, board gender diversity, firm size and firm age respectively were negative except the independent board members, which was positively correlated with firm performance. The study concludes that board size and independent board of director have a positive and significant effect while board gender diversity has a negative but significant effect and foreign board member has a negative but insignificant effect on performance of manufacturing firms listed on the NSE.

Keywords: Board diversity, Financial Performance, Corporate governance

JEL Classification: G28, G34, M12, M14

Suggested Citation

Aghadike, Onyinyechukwu, Corporate Board Diversity and Firm Financial Performance: New Evidence from Nigeria (June 1, 2021). Available at SSRN:

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