Abstract
This exploratory research investigates the complex dynamics among capital structure, board characteristics, and financial performance in listed non-financial companies in Nigeria. Utilizing purposive sampling, the study focuses on 67 companies, primarily non-financial, renowned for consistently providing accessible data. Annual reports from 2012 to 2022 serve as the data source, covering metrics related to capital structure (Debt to Assets Ratio and Leverage Ratio), board characteristics (CEO Duality, Board Size, and Board Gender Diversity), and financial performance (Return on Assets, Dividend per Share, and Earnings per Share). Employing panel data econometrics techniques, including fixed and random effects pooled regression models, the study analyzes these relationships. The findings reveal a statistically insignificant negative impact of capital structure on financial performance, indicated by Debt to Assets Ratio and Leverage. CEO duality shows a negative effect on Earnings per Share without statistical significance. In contrast, Board Size and Board Gender Diversity significantly positively influence Earnings per Share, underscoring their importance in enhancing firm performance. Regarding Dividend per Share, higher Debt to Assets Ratio and Leverage are associated with lower firm performance, while CEO duality’s impact lacks statistical significance. Larger board sizes and greater board gender diversity, however, positively affect Dividend per Share, emphasizing their positive contributions to financial performance. The study concludes with recommendations, including the importance of companies striving for an optimal capital structure, enhancing board diversity, evaluating CEO and Chair role separation, and carefully assessing risk factors when considering higher leverage. Nonetheless, limitations, such as the statistical insignificance of some relationships, the limited data period, and the omission of external factors, highlight avenues for future research.
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