Board Composition, Board Size and Market Value of Listed Industrial Goods Companies in Nigeria

Abstract

This study examines the impact of board composition and board size on the market value of listed industrial goods companies in Nigeria. Ex-post factor research design was used and data was collected from annual reports and account of the sampled companies for the period from 2010 to 2019. The ordinary least square, fixed and random effects regression techniques were applied on the panel data collated to estimate the models. The paper documents significant positive effect of board size on the market value of the companies and insignificant but negative effect of board composition on the market value of the companies. In effect, the result suggests that board size plays important role in determining the market value of the firms. These findings are consistent with the agency theory of corporate governance which suggests higher number of members on board. It is recommended that the size of the board of firms in the sector should not be less than 9 members so as to enhance value.