Board Characteristics and Performance of Quoted Consumer Goods Firms: Evidence from Nigeria

Abstract

Corporate governance has become a worldwide
concern over the year due to numerous corporate
financial failures which has redirected the
attention of policy makers to the significance of
board characteristics. This study examined the
relationship between board characteristics and
performance of quoted Nigerian consumer
goods firms. This study adopted historical
research design and ten firms were selected from
the population of twenty-seven Nigerian listed
consumer goods firms, as at 2017, using simple
random sampling technique. Secondary data
over a period of seven years (2011-2017) was
obtained from the annual reports of the selected
firms. Analysis was performed on data collected
adopting Auto Regressive Distributed Lag
(ARDL) Regression and other post estimation
techniques to determine the existence of
relationship between the variables. The results
of the study showed significant relationships
between board independence, board diligence
and performance of consumer goods firms
(p<0.05). However, there is insignificant relationship between board size, board
composition and performance of consumer
goods firms (p>0.05). The study concluded that
regular board meetings and board independence
play significant roles in timely decision makings
that affect the overall firm’s objective. Hence,
the study recommended a regular board
meetings and board independence that will be
efficient in taking vital decisions that affect the
firm’s overall performance.