BOARD CHARACTERISTICS AND PROFITABILITY OF LISTED PHARMACEUTICAL COMPANIES IN NIGERIA

ABSTRACT This study examined the impact of board characteristics on the profitability of listed pharmaceutical companies in Nigeria over a ten-year period (2015–2024). Specifically, the study assessed how board size, board independence, and board gender diversity influence return on assets (ROA), a key measure of corporate profitability. Employing an ex-post facto research design, secondary data were collected from annual reports of five purposively selected pharmaceutical companies listed on the Nigerian Exchange Group. The data were analyzed using descriptive statistics, correlation analysis, and multiple regression techniques. Findings from the regression analysis revealed that board size and board gender diversity have a positive and statistically significant impact on profitability (p < 0.05), while board independence had a negative but non-significant effect. The study concluded that certain board attributes, particularly size and gender diversity, play a crucial role in enhancing financial performance in the Nigerian pharmaceutical sector. It recommends that companies maintain a moderately sized board and promote gender diversity to foster better governance and profitability. Regulatory authorities are also encouraged to issue clearer guidelines on board composition to ensure improved corporate outcomes.