BOARD OF DIRECTORS’ HETEROGENEITY AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
ABSTRACT
While boards are the main tool of internal governance mechanism, their efficacy may vary
depending on their diversities. This study examined the impact of Board of Directors‟
heterogeneity on the financial performance of listed deposit money banks in Nigeria. This area of
board diversity especially the ethnic diversity is still a novel area of research in Nigeria. The
financial performance in this study was the dependent variable while nationality, gender and
ethnic composition of Board of Directors were the independent variables. The population of the
study consists of fifteen (15) listed deposit money banks in Nigeria as at 31st December 2012.
Eleven of these banks constituted the sample size for the period of eight years (2005-2012). The
study employed multiple regressions as a tool for analysis. Secondary data obtained from the
financial statements of the companies were analyzed. The result showed that gender and
ethnicity of board directors had positive and significant impact on banks financial performance
while, nationality of the board of directors showed a negative but significant relation to banks
financial performance. For banks to achieve greater returns in the market, it is recommended that
ethnic composition of Board of Directors of listed deposit money banks in Nigeria should be
integrated into the corporate governance practices as allowing for a more ethnic balance
translates into better financial performance.
BOARD OF DIRECTORS’ HETEROGENEITY AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
BOARD OF DIRECTORS’ HETEROGENEITY AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
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