Corporate Governance and Financial Performance of Listed Consumer Goods Firms in Nigeria (Published)
The study investigated corporate governance and financial performance of listed consumer goods firms in Nigeria. The specific objectives of the study were to examine the relationship between board size, board independence, board meetings, and return on assets of consumer goods firms in Nigeria. The study adopted ex-post facto research design and secondary data were extracted from the annual reports of sampled consumer goods firms for the period 2013 – 2022. Correlation technique was used for the test of hypotheses. Findings showed that, board size does not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of -0.3815. On the other hand, board independence does not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of 0.2753. However, board meetings do not have a strong relationship with return on assets (ROA) of listed consumer goods firms in Nigeria with correlation coefficient of -0.3904. This implies that none of the corporate governance mechanism studied can be influence return on assets of consumer goods firms in Nigeria. The study recommended that rather than solely increasing board size, consumer goods firms should prioritize diversity and the expertise of board members. Directors should possess skills and experience that align with the industry’s specific needs. Achieving a balance between independent and non-independent directors is crucial. While board independence is important for governance, it should not impede industry-specific knowledge. Companies should strengthen board oversight mechanisms, utilizing robust audit committees and reporting structures to maintain independence while promoting industry expertise. The focus should be on the quality of board meetings rather than a specific number.
Keywords: Board Meetings, Board independence, Board size, Return on Assets, consumer goods firms
Effect of Board Size and Board Composition on Organizational Performance of Selected Banks in Nigeria (Published)
The corporate collapses and failures experienced in the banking industry amid the organizational performance have been a major concern. The study aimed at ascertaining the performances of banks and determining the effect of board size, board composition and organizational performance of selected banks in Nigeria. The methodology adopted was combination of both descriptive design and ex-post facto research. A sample of 6 deposit money banks was purposively selected for a period of 6 years. The data were obtained from the annual reports of the selected deposit money banks. Both descriptive statistics and ratio analysis were used to analyze collated data. Hypotheses were tested by multiple regression and Pearson product moment correlation methods. The finding of the study revealed that there is a positive relationship between Board Composition with performance of selected Banks, while Board Size showed negative significant relationship with performance of selected Banks respectively. The study concluded with recommendations that Corporate Governance Mechanism and Code of Best practices contributed a good deal to the performance of Banks – that the managers of Selected Banks should adopt Corporate Governance principle and best practices as integral parts of managing banks for both effective and efficient service delivering, thus striking a balance between organization’s objective and the stakeholder’s interest.
Citation: Isidore Godwin Usendok; Aaron Akpan; Akpanim N. Ekpe (2022) Effect of Board Size and Board Composition on Organizational Performance of Selected Banks in Nigeria, International Journal of Business and Management Review, Vol.10, No.5, pp.1-25
Keywords: Board Composition, Board size, corporate governance and financial performance
Corporate Governance and Reported Earning Quality in Deposit Money Banks in Nigeria (Published)
This study examined the effect of Corporate Governance on Reported Earnings Quality in Nigerian deposit money banks. Cross sectional data were obtained from Ten (10) listed deposit money banks in Nigerian Stock Exchange for over a period of ten years (2008-2017). The data were analyzed using both descriptive and inferential statistics. Earnings predictability was adopted as a proxy for reported earnings quality, while board size, board independence, foreign directorship and firm size were used as proxies for corporate governance. The study found board size having a positive and insignificant relationship with earnings quality; a negative and insignificant relationship between board independence and earnings quality; a positive and significant relationship between foreign directors on board and earnings quality; and also a negative and insignificant relationship between firm size and earnings quality. It was therefore recommended that deposit money banks should increase both their board size and number of foreign directors on board as these will enhance their reported earnings quality.
Keywords: Board independence, Board size, Corporate Governance, earning quality, foreign directors