BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE
Abstract
ABSTRACT
Board characteristic is one thing that must be rightly constituted for effective performance of
any business entity that is managed by the board. The purpose of the study is to find out the
relationship between board characteristics and financial performance of listed manufacturing
companies. exploratory research design was adopted on a population of listed
manufacturing companies in Nigeria. Using purposive sampling, the study selected 15 of
them and shared the four likert scale structured questionnaire to gather its data. Data were
then analysed using the mean, the Pearson product moment correlation and the regression
analysis. The analysis revealed that board size, board independence, and board diversity
have significant relationship with net profit margin with a significant value of 0.000 across
board. Further analysis showed that board size, board independence, and board diversity all
have a very strong relationship with net profit margin with correlation values of 0.946,
0.853, and 0.893. Thus the research recommended that board size should not be large but
few for active participation, independence of the board must not be compromised, and
female participation in the board should be encouraged. On this note, the work concluded
that board characteristics has a strong s
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