IMPACT OF BOARD CHARACTERISTICS ON FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Abstract

This study investigates the impact of board characteristics on financial performance of listed industrial goods firms in Nigeria. The population of the study consist of all the twelve (12) listed industrial goods firms in Nigeria. However, nine (9) firms were selected as the sample size using simple random sampling technique. Data were obtained from annual reports and accounts of the industrial goods firms over a six (6) years period and analyzed using multiple regression analysis. The findings shows that board size has a negative and significant effect on the return on asset of listed industrial goods firms in Nigeria. In contrast, board independence and board nationality show positive and insignificant effects on return on assets. The study concludes that larger boards may slow down decision-making and reduce operational efficiency, which negatively impacts financial performance. The study recommends that industrial goods firms should maintain optimally sized boards, which will balance expertise with efficiency and improve financial performance.