International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)
  Year: 2022 | Volume: 6 | Issue: 7 | Page No.: 60-67
BOARD ATTRIBUTES AND CORPORATE PERFORMANCE: EVIDENCE FROM THE NIGERIAN BANKING INDUSTRY Download PDF
James Ese Ighoroje

Abstract:
This study verified whether Return on Equity (ROE) of quoted banks in Nigeria can be influenced by banks' attributes. The regressor is board attributes measured by board size, board educational exposures, Diverse Board, and board independence while the regressand is corporate performance measured by return on equity. Meanwhile, the study focused on 14 DMBs in Nigeria from 2012to 2021. Since all the classical assumptions were all fulfilled except the model deviated widely from the normality assumption, the Generalized Linear Model (GML) became the most feasible estimation technique suitable for this paper. Findings revealed that board sizeand Diverse Board exerted positive yet statistical significant impact on ROE of quoted banks in Nigeria. However, INB (independent board) show negative and minimaleffects on the ROE of quoted banks in Nigeria. Meanwhile, board educational exposureshad positive inconsiderable effects on ROE. Hence, the study concludes that board sizeand Diverse Boardaremajor drivers of of bank performance. As such, bank management should ensure that the board of director's sizes should not be too large and that they strive to elect gender diverse boards that have the right balance between men and women.