Title: Impact Of Board Attributes (Ba) On Financial Performance (Fp) Of Dmbsin Nigeria
Authors: Edwin AruoboghaOnatuyeh
Volume: 9
Issue: 7
Pages: 208-219
Publication Date: 2025/07/28
Abstract:
This study explores how board attributes (BA) influence the financial performance (FP) of Nigerian deposit money banks, using Return on Equity (ROE) as the performance metric over the period 2015 to 2024. Employing a Panel EGLS model with cross-section random effects, the study focuses on four key board variables: Board Size (BS), Board Independence (BI), Board Gender Diversity (BGD), and Board Meeting Frequency (BMF). The results indicate that Board Size (BS) has a statistically significant positive impact on ROE, supporting the Resource Dependence Theory, which argues that larger boards can provide a wider pool of resources and expertise. However, BI shows a significant negative effect, suggesting that excessive independence may limit effective decision-making an outcome consistent with Agency Theory. BGD reveals a small negative impact, pointing to the possibility that gender diversity in Nigerian banks is still emerging and may not yet be fully integrated into board dynamics. BMF has a positive but statistically insignificant relationship with ROE, implying that while frequent meetings may aid governance, their effect on performance is not strong. Based on these findings, the study recommends maintaining an optimal board size, ensuring balanced board independence, and encouraging gender diversity without tokenism. It contributes to the understanding of corporate governance practices in developing economies and highlights the nuanced role board composition plays in shaping bank performance. Future research could expand on this work by including additional governance variables or conducting cross-country comparisons to broaden the policy implications.