Board Characteristics and Financial Performance of Conglomerates in Nigeria

Abstract

This study explores the influence of corporate board attributes on the financial performance of conglomerates in Nigeria. Board Size, Board Independence, Board Committees, Board Meetings, and Board Shareholdings served as indicators of board characteristics, while financial performance was measured by Return on Assets (ROA). As a consequence of the 10-year study period from 2011 to 2020, a sample of five quoted conglomerates was selected. Secondary data were obtained from the annual reports of the selected conglomerates using an ex-post facto research design. The regression method employed was panel data regression. The findings demonstrate that the size, independence, and stock holdings of the board and audit committee had a considerable effect on the financial performance of conglomerates in Nigeria. However, board meetings did not show any significant influence on the financial performance of Conglomerates in Nigeria. The study recommends reasonable synergy between board members and owners to maintain a reasonable board size, accountability, transparency, and teamwork in order to sustain board independence as an instrument or influence on the financial performance of conglomerates in Nigeria. At the same time and reduce the frequency of holding board meetings in order to minimize its adverse effects on the financial performance of conglomerates in Nigeria.