Relationship Between Board Structure Variables and Performance of Listed Manufacturing Firms in Nigeria
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Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Business and Administration, University of Bucharest
Abstract
Corporate board structure has been at the center of policy debate concerning their relevance
to organisation’s performance in recent times. Since the value creation of corporate
governance can be measured through firm performance, this study investigates the relationship
between board size, board composition, CEO-duality and performance of listed manufacturing
firms in Nigeria. Content analysis was used to collect secondary information from the thirty
listed firms that met the requirement for selection as sample between 2006 and 2010 from
Nigerian stock exchange Fact Books. Panel data regression techniques were employed as
analytical instrument to test the study hypotheses. Findings of the study revealed that board
sizes is positively related to ROA but negatively related to ROE performance variables. The
study recommends that firms should appoint more of outside directors (NEDs) than inside
executive directors to enable it to maximize the benefits of board independence as well
maintain a two-tier board structure.
Description
Keywords
Board structure, Board size, Board composition, CEO-duality, Listed manufacturing firms, Performance