The Link between Corporate Board and Financial Performance: Evidence From Money Deposit Banks in Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.6(1)2024.011Keywords:
Corporate board, financial performance, money deposit banks, NigeriaAbstract
This study investigates the effect of board structure on financial performance of listed DMBs in Nigeria, using a sample of ten (10) DMBs. The study covers a period of 10years (2011-2020) and employed correlation research design. Random effect regression was adopted. The study found that gender diversity on board has a statistically significant positive effect on the financial performance of listed DMBs in Nigeria. The regression result shows that increasing the size of the board does not affect financial performance. The regression analysis also revealed that increasing the number of meetings held per year does not have significant effect on the profitability. Thus, increasing the number of meetings held in a year is not necessarily going to improve financial performance. It is recommended that listed DMBs should focus on expanding the quota of female directors serving on the board, as this will help to increase the companies' profitability potential.
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