Zeitschrift der Academy of Entrepreneurship

1528-2686

Abstrakt

Directors' Observable Characteristics and Firm Performance in Nigeria: A Panel Analysis

Demaki, G.O. Imasuen, Osasere Festus and Eromafuru, E.G.

This study looked at the observable characteristics of directors and the performance of publicly traded companies on the Nigerian stock exchange floor. Secondary data on observable features such as board size, board gender diversity, non-executive director, and board independence, as well as Tobin's Q performance measure, were used in a cross-sectional research design.The disproportionate random sampling technique using a sample of 100 firm-year observations covering 25 active listed firms in the periods of 2015 to 2018 was employed. The researchers used a disproportionate random sampling technique with a sample of 100 firm-year data from 25 active listed companies from 2015 to 2018. The panel least squares analysis was employed as the estimation method. The unit root and co-integration test for panel data were used as pre-estimation tests to determine the long-term convergence status of the variables.The findings revealed that, among the directors' qualities studied, board size and non-executive directors had a significant impact on firm performance; more importantly, only non-executive directors have a positive impact.On the basis of the findings, it was suggested, among other things, that females be given more opportunities in the board composition because of their natural role of being meticulous, while the board size be reduced to decrease agency costs.

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