Board Characteristics and Firm Performance: Evidence from Nigerian Quoted Companies

Ilaboya, O. J.; Obaretin, O.

doi:10.5901/mjss.2015.v4n1p283

Cited by 21 publications

(28 citation statements)

References 13 publications

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“…Also, Ironkwe and Adee (2014) found a positive and statistically significant relationship between board size and firm performance, in sample of 40 financial firms in Nigeria. Using Time series data from 166 firms quoted on the Nigerian Stock Exchange market from 2005 to 2012 in the Food and Beverages sector, Ilaboya and Obaretin (2015) found a similar result which showed a positive relationship between board size and corporate financial performance measured by PAT. The study reports a mean board size of 9 which is consistent with (Jensen, 1993).…”

Section: Board Size and Financial Performancementioning

confidence: 71%

“…In contrast, other Nigerian studies (Kajola, 2008;Sanda et al, 2010;Akpan & Amran, 2014;Ironkwe & Adee, 2014;Ilaboya & Obaretin, 2015) and non-Nigerian studies (Adams & Mehran, 2012;Owusu, 2012) have found a positive relationship between board size and firm performance. Using a sample of 20 Nigerian listed firms from 2000 to 2006 measured by ROE, Kajola (2008) found a positive and statistically significant relationship.…”

Section: Board Size and Financial Performancementioning

confidence: 80%

“…In summary, previous studies regarding the relationship between board characteristics and firm"s performance across Nigeria has been conducted in the various sectors of the Nigerian economy (e.g. Ilaboya & Obaretin (2015) in the consumer goods sector between 2005 and 2012; Shehu & Musa (2014) in the banking sector between 2007 and 2011; Garba & Abubakar (2014) in the insurance sector between 2004 and 2009). However, there are none of these studies empirically examine the board characteristics in the consumer goods in Nigeria to year 2015.…”

Section: Discussionmentioning

confidence: 99%

See 2 more Smart Citations

Effect of Board Size, Board Composition and Board Meetings on Financial Performance of Listed Consumer Goods in Nigeria

Gambo¹,

Bello²,

Rimamshung³

2018

IBR

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The central thrust of this study is to examine the effect of board size, board composition and board Meetings on the financial performance of listed consumer goods in Nigeria over the period of ten years from 2006 to 2015. The study uses expo factor research design and purposive sampling technique (filter) as research design and sampling technique. The population of the study is twenty (20) listed consumer goods companies in Nigeria and a sample size of ten (10) companies were studied. The data was analysed by means of descriptive statistics, Correlation and Regression analysis using STATA (version 11). The descriptive result reveals that return on assets has minimum and maximum values of -0.0400 and 0.4700 respectively and the mean and standard deviation of 0.1199 and 0.1038 respectively. The study made use of secondary data generated from annual report and account of the sampled companies through Nigeria Stock Exchange fact book. The findings include the following: Board size is negatively significant at 1% with T. Value of _2.70, Board composition is positively significant at 1% with T- Value of 2.15 and finally, Board meeting is negatively insignificant with T- Value of _1.45. This study concluded that smaller board size are more effective than larger board size, good proportion of board composition is a good factor to enhance ROA of listed consumer goods companies in Nigeria and frequent board meeting will have negative effect on the ROA of listed consumer goods companies in Nigeria because it will limits the chances for external directors to conduct a meaningful oversight over management. Hence the study recommends among others; That smaller board size should be used in listed consumer goods companies in Nigeria to enhance their ROA, the listed consumer goods companies should continue to maintain good proportion of independence directors. The listed consumer goods companies in Nigeria should discourage unnecessary board meetings to allow board of directors perform other oversight function on the management so as to enhance the ROA of listed consumer goods companies in Nigeria.

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Section: Board Size and Financial Performancementioning

confidence: 71%

Section: Board Size and Financial Performancementioning

confidence: 80%

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Effect of Board Size, Board Composition and Board Meetings on Financial Performance of Listed Consumer Goods in Nigeria

Gambo¹,

Bello²,

Rimamshung³

2018

IBR

View full text Add to dashboard Cite

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“…(2015) , in their study, revealed the negative relationship between board diligence and firm performance and one of their recommendations was that the meetings should be more important and less frequent. This is believed is said to be supported by Lorsch and MacIver (1989) (as cited in the work of Ilaboya and Obaretin, 2015 ), of which their observation was that frequent meetings lead to the diversion of an organization's time, energy and resources into less productive activities. This observation is also supported by ( Mace, 1986 ; Useem, 2006 ; Johl et al., 2015 ; Ilaboya and Obaretin, 2015 ).…”

Section: Introductionmentioning

confidence: 88%

“…The board meeting is a medium set up for deliberations on key issues and matters amongst board members in order to make certain important decisions for the progress and growth of any organization. The diligence of board members is often measured on the board meeting attendance frequency by each of the board members ( Ghosh, 2007 ; Johl et al., 2015 ; Ilaboya and Obaretin, 2015 ). There is not slated governance law that determines the minimum amount of meetings to be attended by a board member as it were to the best of knowledge.…”

Section: Introductionmentioning

confidence: 99%

Board meeting frequency and firm performance: examining the nexus in Nigerian deposit money banks

Eluyela

Akintimehin

Okere

et al. 2018

Heliyon

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The main aim of this study is to examine the impact of board meeting frequency on firm performance of deposit money banks in Nigeria. Data used for the study were spawned from annual reports of the deposit money banks listed on Nigeria stock exchange (NSE) market. We employed a panel regression to test the significant association amid variables. Our main empirical result shows a positive association amid board meeting frequency and firm performance. Although, our findings also show that board size was positive and not significant and firm size was negative and significant. The study recommended that management of banks should consider increasing their frequency of board meetings to at least four (4) meetings per year. This will allow the sampled deposit money banks to comply with the good governance code in Nigeria which states that companies must meet at least once per quarter.

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Moderating role of Shariah committee quality on relationship between board of directors effectiveness and the performance of Malaysian Takaful

Eldaia

Hanefah

Marzuki

2022

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Purpose The purpose of this study is to examine the effect of Board of Directors Effectiveness (BODE) on the performance of Malaysian Takaful companies licensed by the Central Bank of Malaysia. In addition, the study investigates the moderating effect of Shariah Committee Quality (SCQ) on the relationship between BODE and companies’ performance. Design/methodology/approach This study uses a sample of 11 Malaysian Takaful companies during the period of 2010-2017. While BDE and SCQ are measured using indices, performance is proxied using ROA and ROE. A panel fixed effect regression analysis is used to test the impact of the BDE on the financial performance of Malaysian Takaful companies and the moderator role of SCQ. Findings The main finding of this study shows a positive association between BDE and performance. More specifically, boards with a high presence of independent, Muslim and female directors positively contribute to the performance of Malaysian Takaful companies. Another interesting finding is related to the positive moderating effect of SCQ on the relationship between BDE and performance. This result indicates that a high level of SCQ combined with a high level of board effectiveness improve performance. Practical implications The finding is of great importance to stakeholders and policymakers to improve their board effectiveness and the quality of the Shariah committee to reduce agency costs and to improve the performance of Malaysian Takaful companies. Originality/value This study adds to the prior literature by investigating for the first time the relationship between BDE and performance and the interaction effect of SCQ on the performance of Malaysian Takaful companies.

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Board Characteristics and Firm Performance: Evidence from Nigerian Quoted Companies

Abstract: The

Cited by 21 publications

References 13 publications

Effect of Board Size, Board Composition and Board Meetings on Financial Performance of Listed Consumer Goods in Nigeria

Effect of Board Size, Board Composition and Board Meetings on Financial Performance of Listed Consumer Goods in Nigeria

Board meeting frequency and firm performance: examining the nexus in Nigerian deposit money banks

Moderating role of Shariah committee quality on relationship between board of directors effectiveness and the performance of Malaysian Takaful

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