BOARD STRUCTURE AND FINANCIAL PERFORMANCE OF SELECTED CONSUMER GOODS FIRMS IN NIGERIA
Abstract
The study relationship between board structure and financial performance of selected consumer goods firms in Nigeria. The specific objectives were to; examine the relationship between board size and return on asset, find out the relationship between board meeting and return on asset, determine the relationship between board independent on return on, the study adopted ex post facto research design and this design was chosen due to its alignment with the study's reliance on historical accounting data obtained from the financial statements of selected firms from over a period 10 years from 2014-2024. The population of the study consists of all the twenty-one (21) consumer goods manufacturing companies listed on the Nigerian Exchange Group (NEG). Board size, board meeting, board independent and board diversity were jointly used as proxies for board structure while return on asset was used as a variable for financial performance. Based on the nature of data extracted, Pearson correlation and the panel least squares method of data analysis was engaged to investigate the relationship between board structure and financial performance of selected consumer goods firms in Nigeria. The result of the models according to Hausman test provided evidence for the selection of the random effect regression. It was found that board size has a positive and significant association with return of asset of listed consumer goods firms in Nigeria, there is a negative and significant relationship between board meeting and return on asset of listed consumer goods firms in Nigeria, board independent has a negative and insignificant influence on return on asset of listed consumer goods firms in Nigeria. Based on these findings, the study concluded that board structure has no significant influence of financial performance of listed consumers’ goods firms in Nigeria. The study, therefore, recommended that regulatory bodies should evolve practices by designing robust policies that would address acute female under-representation on the boards of listed consumers’ goods firms in Nigeria
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