BOARD SIZE AND CAPITAL STRUCTURE OF LISTED SERVICES FIRMS IN NIGERIA, MODERATED BY FIRM LISTING AGE

Abstract

This study examines the effect of board size on the capital structure of 17 listed services firms in Nigeria, for a period of 10 years (2013-2022) using firm listing age as a moderator. Board size is measured by the absolute number of directors on the board, while capital structure is measured by long-term debt to equity. Firm listing age is measured from the age of listing of the firm on the Nigerian Exchange. The results show that the R-square value in Model 1 is 7.46%, while it is 8.27% in Model 2. Based on these results, the study concludes that board size is not a determinant of capital structure before moderation and after moderation. Further research is expected to be able to add other board of directors' characteristics that may influence the capital structure decisions of a firm. Limitations of the study include methodology and possible omission of some variables. It is felt that both within and between endogeneities may be better addressed using simultaneous equation methodology. Furthermore, the study is limited by the number of samples (17). It is expected that further research can increase the sample by adding to the research period or using company samples from other sectors, not only the services sector.

Keywords: board size, capital structure, firm listing age, Nigeria Exchange, services firms JEL Codes: C23, C58, C87, M21, M24, M48