For correspondence:-
Received: 3 Nov 2017 Accepted: 25 Dec 2017 Published: 31 Dec 2017
Citation: CORPORATE BOARD DIVERSITY AND FINANCIAL PERFORMANCE OF BANKS: EVIDENCE FROM NIGERIA. Account Tax Rev 2002; 1(1):119-140 doi:
© 2002 The authors.
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Abstract
This study examined corporate board diversity and financial performance of Nigerian Banks. The paper employed a panel research design; annual data were sourced from banks quoted in the Nigerian Stock Exchange (NSE) as at 2015 and were analyzed using Ordinary Least Square (OLS) statistical technique. The result from the study revealed that gender composition and foreign nationality exhibits significant impact on financial performance of banks in Nigeria, though the strength of their impact differs. However, independent directors and board ethnic diversity had insignificant impact on financial performance of banks in Nigeria. The study envisaged that a high sex composition in favors of women, foreign directors and ethnic diversity in favors of southerners in the board of Nigerian banks will significantly improve their overall financial performance. This paper therefore recommends that foreign nationalities in the board of Nigerian banks should be increased because it enhances their financial performance by increasing accessibility to technology, information sharing and reducing inefficiencies in management; it is also recommended that ethnic diversity be given serious consideration if the goal of maximizing corporate financial performance is to be achieved in Nigerian banks. JEL Classification: L250
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