Board Characteristics and Company Performance: Evidence from Nigeria

Akpan, Edem Okon

doi:10.11648/j.jfa.20140203.17

Cited by 63 publications

(42 citation statements)

References 48 publications

(20 reference statements)

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“…Moreover, the higher the education, the more problemsolving methods that can be applied. Our finding supports the Upper Echelon theory and is consistent with King, Srivastav, and Williams (2016) and Akpan and Amran (2014), who found that educational attainment affects firm performance; those who have received higher education would possess knowledge, experience, and the skills to manage performance and organizational affairs. b) Independent directors and bank performance The p-value for INDIE is .2621 and consequently, H2 was rejected.…”

Section: Methodssupporting

confidence: 91%

What characteristics of board of directors affect Indonesian bank performance?

Pangestu

Dharmastuti

2018

IJAES

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The sustainability of a firm is determined by the effectiveness of its board of directors. Hambrick and Mason’s Upper Echelon theory states that management characteristics could predict organizational outcomes. This study examines the effects of the characteristics of board of directors on the performance of publicly-traded banks in Indonesia. The measures of board characteristics are educational attainment, presence of independent directors, employment of foreign directors, compensation of directors, and age of directors. Our 58 firm-year observations from 2014-2015 were analyzed using fixed effects model. We find evidence that bank profitability is (i) positively affected by doctorate education of board members and (ii) negatively affected by remuneration of top executives. Based on our findings, we would suggest corporations to: comply with governmental regulations regarding the employment of independent directors, align the interest between principals and agents to eliminate agency problem, and accommodate board members with scholarships designated for academic development.

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Section: Methodssupporting

confidence: 91%

What characteristics of board of directors affect Indonesian bank performance?

Pangestu

Dharmastuti

2018

IJAES

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“…In contrast, other Nigerian studies (Kajola, 2008;Sanda et al, 2010;Akpan & Amran, 2014;Ironkwe & Adee, 2014;Ilaboya & Obaretin, 2015) and non-Nigerian studies (Adams & Mehran, 2012;Owusu, 2012) have found a positive relationship between board size and firm performance. Using a sample of 20 Nigerian listed firms from 2000 to 2006 measured by ROE, Kajola (2008) found a positive and statistically significant relationship.…”

Section: Board Size and Financial Performancementioning

confidence: 80%

Effect of Board Size, Board Composition and Board Meetings on Financial Performance of Listed Consumer Goods in Nigeria

Gambo¹,

Bello²,

Rimamshung³

2018

IBR

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The central thrust of this study is to examine the effect of board size, board composition and board Meetings on the financial performance of listed consumer goods in Nigeria over the period of ten years from 2006 to 2015. The study uses expo factor research design and purposive sampling technique (filter) as research design and sampling technique. The population of the study is twenty (20) listed consumer goods companies in Nigeria and a sample size of ten (10) companies were studied. The data was analysed by means of descriptive statistics, Correlation and Regression analysis using STATA (version 11). The descriptive result reveals that return on assets has minimum and maximum values of -0.0400 and 0.4700 respectively and the mean and standard deviation of 0.1199 and 0.1038 respectively. The study made use of secondary data generated from annual report and account of the sampled companies through Nigeria Stock Exchange fact book. The findings include the following: Board size is negatively significant at 1% with T. Value of _2.70, Board composition is positively significant at 1% with T- Value of 2.15 and finally, Board meeting is negatively insignificant with T- Value of _1.45. This study concluded that smaller board size are more effective than larger board size, good proportion of board composition is a good factor to enhance ROA of listed consumer goods companies in Nigeria and frequent board meeting will have negative effect on the ROA of listed consumer goods companies in Nigeria because it will limits the chances for external directors to conduct a meaningful oversight over management. Hence the study recommends among others; That smaller board size should be used in listed consumer goods companies in Nigeria to enhance their ROA, the listed consumer goods companies should continue to maintain good proportion of independence directors. The listed consumer goods companies in Nigeria should discourage unnecessary board meetings to allow board of directors perform other oversight function on the management so as to enhance the ROA of listed consumer goods companies in Nigeria.

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“…To align executives' and owners' goals, agency theory recommends separation of decision making between executives and owners. Akpan and Amran (2014), for example, used agency theory to identify the impact of independent directors and sustainability performance and found that independent directors within the board help to minimize the agency costs, monitor the agent decisions effectively, and supervise the executive directors.…”

Section: Board Of Directors and Sustainability Performancementioning

confidence: 99%

Board of Directors Attributes and Sustainability Performance in the Energy Industry

Gardazi¹,

Hassan²,

Johari³

2020

JAFEB

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The board of directors play an important role in corporate climate strategy-making and decisions but might also compromise environmental policies to minimize agency cost. This study critically investigates the relationship between the attributes of the board of directors and the degree of sustainability performance for the energy sector as discussed in the literature. Our study cumulates existing knowledge offering important characteristics for a balanced board structure to increase the board's effectiveness in adopting sustainable initiatives that could reduce the adverse impact of an energy corporation's operation on the environment. Crucial attributes of the board of directors deemed to be positively associated with the commitment to reduce carbon footprint in the environment have been identified. Based on our extensive analysis of the literature we propose a conceptual framework that measures the influence of the board of directors' attributes on corporate environmental and social sustainability performance. The proposed framework will be useful as an initial step for top management and regulators to gain a better understanding of the balanced board structure required to achieve the social and environmental sustainability performance of corporations. Further, this paper contributes to a body of knowledge about how the board of directors could play a crucial role in monitoring social and environmental threats.

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Board Characteristics and Company Performance: Evidence from Nigeria

Cited by 63 publications

References 48 publications

What characteristics of board of directors affect Indonesian bank performance?

What characteristics of board of directors affect Indonesian bank performance?

Effect of Board Size, Board Composition and Board Meetings on Financial Performance of Listed Consumer Goods in Nigeria

Board of Directors Attributes and Sustainability Performance in the Energy Industry

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