EFFECT OF BOARD SIZE AND COMPOSITION ON FINANCIAL PERFORMANCE: EVIDENCE FROM DEPOSIT MONEY BANKS IN NIGERIAN

EFFECT OF BOARD SIZE
AND COMPOSITION ON FINANCIAL
PERFORMANCE:
EVIDENCE FROM DEPOSIT
MONEY BANKS IN NIGERIAN
Aernan, Johnson Emberga josn
n4u@gmail.com
ABSTRACT
Corporate governance studies and particularly
the role of the board have been well
documented in the literature. However,
empirical evidence has largely remained
inconclusive and many of the studies have
lagged over the years. In the
light of recent data, this paper attempts to re-
examine
the
board
characteristics
performance nexus using the agency theory
as the theoretical framework. By adopting
board size and composition as the
independent variables and Tobin's Q as the
dependent variable, the paper finds that
both board size and composition have
statistically significant effect on deposit
money banks' financial performance after
controlling for bank size, age and market
share. The findings underscore how expensive
agency cost is and highlight the importance of
the board in mitigating it.

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