Corporate Board Attributes and Financial Performance of Quoted ICT Companies in Nigeria (Published)
Financial performance variations experienced by ICT companies in Nigeria have been linked to corporate governance inefficiencies due to the failure to harness board attributes towards the maximization of asset efficiency and profitability. Although the information and communication technology sector is critical to economic development in Nigeria, literature on how corporate board attributes can help improve the financial performance of companies operating in this environment is scarce. This paper, therefore, evaluates the effect of corporate board attributes on the financial performance of quoted ICT companies in Nigeria. Specifically, this study evaluates the impact of board independence, board gender diversity, and board size on financial performance represented by return on assets. A quantitative research design based on the ex-post facto method is adopted, with the target population being all the ten ICT companies operating in Nigeria and listed on the NGX through census technique. Data are obtained from annual reports and corporate governance reports of sampled firms spanning eight years from 2017 to 2024. Panel data analysis is carried out using a fixed-effect regression model which was selected through the Hausman specification test. Data analyses are conducted using Stata software, version 17, with hypothesis testing done at 5 per cent probability level. Empirical results show that board independence has a negative but statistically significant effect on return on assets (p= 0.0015), implying that too much board independence incurs the cost of monitoring and induces decision lags resulting in poor utilization of assets. Board gender diversity has a positive, albeit, statistically insignificant effect on return on assets (p=0.4231), showing that current levels of board gender diversity may be too low to impact financial performance significantly. Board size has a statistically significant positive effect on return on assets (p=0.0489) meaning that moderate-sized boards allow for better access to expertise and other resources that boost financial performance. The control variable, firm size has a statistically significant positive effect on return on assets (p=0.0173). In conclusion, the study reveals that corporate board attributes play an influential role in determining financial performance in Nigeria. The implications of these findings are discussed and recommendations proposed.
Keywords: Board independence, Board size, Financial Performance, board gender diversity, corporate board attributes
Corporate Governance Mechanisms and Financial Performance of Listed Insurance Firms in Nigeria (Published)
This study examines the effect of corporate governance mechanisms on the financial performance of listed insurance firms in Nigeria. Focusing on board size, board independence, board gender diversity, and audit committee independence, the study uses audited financial statements from all 17 listed insurance companies with complete data from 2020 to 2024. Employing an ex-post facto research design and panel data analysis, the study applies descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression to assess the relationships between governance characteristics and Return on Assets (ROA). The findings reveal that board gender diversity and audit committee independence significantly enhance ROA, while board size and board independence do not have a statistically significant effect. The study highlights the importance of board composition quality, particularly gender diversity and independent audit oversight, in promoting firm performance. These results provide practical insights for regulators, investors, and corporate boards in optimizing governance structures for sustainable growth.
Keywords: Board independence, Board size, Corporate Governance, Financial Performance, audit committee independence, board gender diversity
Analysis of The Role of Corporate Governance Mechanisms in Shaping the Financial Reporting Practices of MNEs in Nigeria (Published)
This study analysed the role of corporate governance on the quality of financial reporting practices of Multinational Enterprises (MNEs) in Nigeria. The study made use of managerial hegemony theory to establish a theoretical foundation in examining the effect of corporate governance mechanisms in the quality of the financial reporting practices of MNEs in Nigeria. Ex-post facto research design and panel regression were employed by the study. The study extracted data from the audited financial statement of 20 active MNEs in the consumer manufacturing sector listed on Nigeria Exchange Group (NGX). The population forms the sample size using census sampling. Findings revealed that the size of board, board independence, gender diversity and board shareholding did not significantly affect the quality of financial reporting practices of MNEs in Nigeria. Firm size and firm leverage significantly moderate the interaction between corporate governance and the quality of financial reporting practices of MNEs in Nigeria. The study concluded that this finding is a pointer to the fact that the quality of financial reporting of MNEs in Nigeria may be determined by factors other than corporate governance such as the adoption of International Financial Reporting Standard (IFRS), regulations, and Nigerian laws (CAMA 2020). Therefore, the study recommends that MNEs in the consumer sector in Nigeria should strengthen their corporate governance mechanism with the aim of improving the quality of financial reporting of their businesses in the short-run and the confidence of their customers and investors in the long-run.
Keywords: Board size, Corporate Governance, board gender diversity, board independent, board shareholding, financial reporting practices