Board Attributes and Corporate Performance: Evidence from Nonfinancial Firms in Nigeria

Corporate board is pressured from all stakeholders for better reporting on corporate health. Meanwhile, effective discharge of the responsibilities of a corporate board is assured by an appropriate balance of skills and diversity without compromising competence, independence, and integrity. This study examines the extent to which corporate board attributes drive the performance of non-financial firms in Nigeria. The study adopted ex post facto research design. Data were extracted through content analysis from the annual report of 93 out of 122 non-financial firms listed on the Nigerian Stock Exchange from 2006 to 2015. Collected data were analysed with pooled ordinary least square regression conducting diagnostic tests to confirm the assumptions of the regression. Analysis revealed that: Board size and board gender diversity have a positive and significant effect on corporate performance. While board independence and board remuneration have a negative and significant effect on corporate performance. Also, directors' shareholding has a negative but insignificant effect on corporate performance. Based on the findings, the study among other things recommends that companies in Nigeria should promote diversity in its membership across a variety of attributes particularly gender diversity considering that it is relevant for enhancing firm performance. Also, Company should remunerate fairly, responsibly and transparently so as to reduce the decreasing effect of board remuneration and promote positive outcomes in the short, medium and long term.