Board Heterogeneity and Corporate Performance of Firms in Nigeria

Abstract

The study ascertained the effect of board heterogeneity on performance of firms in Nigeria. Specifically, the study examined the effect of board size, women on board and board independence on return on assets of listed manufacturing firms on Nigerian Stock Exchange. The study adopted Ex-post facto research design. Population of the study is made up of seventy six manufacturing firms listed on the Nigerian Stock Exchange as at the year, 2016 while thirty two firms was used as sample of the study. The secondary data used in the study were sourced from the publications of Nigeria Stock Exchange and annual reports of the sampled firms. Multiple regression analysis with the aid of E-View 9.0 statistical software was used for data analysis. Findings of the study revealed that board size, women on board and board independence have significant and positive effect on return on assets of manufacturing firms listed on Nigerian Stock Exchange. Based on this, the study recommended among others that Firms should endeavor to diversify their board for improved groupthink and board effectiveness.