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Article . 2022
License: CC BY
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Article . 2022
License: CC BY
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Board characteristics and profitability

Authors: Yahaya, Onipe Adabenege;

Board characteristics and profitability

Abstract

Nigeria's economy was severely impacted by the Global Financial Crisis of the late 1990s; consequently, there has been a refocus on the role of the board of directors in modern businesses as a means to increase profitability and efficiency and decrease vulnerability. Despite the importance of Nigeria's new businesses in light of the information age, few studies have focused on the country's corporate board of directors. By examining the connection between certain characteristics of boards of directors and the profitability of Nigerian companies, this study hopes to fill a knowledge gap. Annual data from 2012-2021 is used to examine 75 Nigerian Exchange Group companies that are not in the financial sector. Using financial ratios like return on assets and return on equity, a multiple regression analysis was conducted to determine the correlation between certain board of directors traits and the companies' profitability. Board independence, board gender diversity, and audit committee independence are the characteristics of boards that are measured. Independent directors and an independent audit committee did not have an effect on the profitability of Nigerian companies outside of the financial sector, while gender diversity on the board had a positive impact.

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Keywords

board of directors, profitability, non-financial services companies.

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selected citations
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This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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