The Relationship Between Board Diversity and Corporate Financial Performance: <i>Empirical Evidence from Five Selected Commercial Banks in Nigeria</i>

Sixtus Cyprian Onyekwere; Samuel Wesiah; Shukriyya Nuuman Danbatta

doi:doi:10.11648/j.ijfbr.20190504.13

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The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria

Sixtus Cyprian Onyekwere, Samuel Wesiah, Shukriyya Nuuman Danbatta

Published in International Journal of Finance and Banking Research (Volume 5, Issue 4)

Received: 2 July 2019 Accepted: 4 August 2019 Published: 15 August 2019

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Abstract

The purpose of this research was to investigate the nature of the relationship between board diversity and financial performance of deposit money Banks quoted on the Nigerian stock exchange. Based on extensive review of the literature, three board diversity variables were identified namely gender (measured by the proportion of women in the boardroom), non-executive directors (measured by the proportion of non-executive directors that make up the boardroom) and board size. Financial performance was measured using Return on Assets (ROA) and Return on Equity (ROE). The Fixed effects Panel data regression model was used to test the nature of relationship between the board diversity variables and the financial performance variables, using secondary data from the Banks annual financial statements covering the period from 2006-2017. The result of the analysis showed that gender diversity has a statistically significant positive impact on banks financial performance. On the other hand, the study also indicated that non-executive directors and board size do not have a significant impact on banks performance. Based on the findings from this study, it was therefore recommended that quoted deposit money banks in Nigeria should raise female proportions in their boardroom so as to improve financial performance.

Published in	International Journal of Finance and Banking Research (Volume 5, Issue 4)
DOI	10.11648/j.ijfbr.20190504.13
Page(s)	76-90
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Corporate Governance, Financial Performance, Board Diversity, Panel Data, Fixed Effects, Nigerian Banks

References

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Sixtus Cyprian Onyekwere, Samuel Wesiah, Shukriyya Nuuman Danbatta. (2019). The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria. International Journal of Finance and Banking Research, 5(4), 76-90. https://doi.org/10.11648/j.ijfbr.20190504.13

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ACS Style

Sixtus Cyprian Onyekwere; Samuel Wesiah; Shukriyya Nuuman Danbatta. The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria. Int. J. Finance Bank. Res. 2019, 5(4), 76-90. doi: 10.11648/j.ijfbr.20190504.13

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AMA Style

Sixtus Cyprian Onyekwere, Samuel Wesiah, Shukriyya Nuuman Danbatta. The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria. Int J Finance Bank Res. 2019;5(4):76-90. doi: 10.11648/j.ijfbr.20190504.13

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@article{10.11648/j.ijfbr.20190504.13,
  author = {Sixtus Cyprian Onyekwere and Samuel Wesiah and Shukriyya Nuuman Danbatta},
  title = {The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {4},
  pages = {76-90},
  doi = {10.11648/j.ijfbr.20190504.13},
  url = {https://doi.org/10.11648/j.ijfbr.20190504.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190504.13},
  abstract = {The purpose of this research was to investigate the nature of the relationship between board diversity and financial performance of deposit money Banks quoted on the Nigerian stock exchange. Based on extensive review of the literature, three board diversity variables were identified namely gender (measured by the proportion of women in the boardroom), non-executive directors (measured by the proportion of non-executive directors that make up the boardroom) and board size. Financial performance was measured using Return on Assets (ROA) and Return on Equity (ROE). The Fixed effects Panel data regression model was used to test the nature of relationship between the board diversity variables and the financial performance variables, using secondary data from the Banks annual financial statements covering the period from 2006-2017. The result of the analysis showed that gender diversity has a statistically significant positive impact on banks financial performance. On the other hand, the study also indicated that non-executive directors and board size do not have a significant impact on banks performance. Based on the findings from this study, it was therefore recommended that quoted deposit money banks in Nigeria should raise female proportions in their boardroom so as to improve financial performance.},
 year = {2019}
}

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TY  - JOUR
T1  - The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria
AU  - Sixtus Cyprian Onyekwere
AU  - Samuel Wesiah
AU  - Shukriyya Nuuman Danbatta
Y1  - 2019/08/15
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190504.13
DO  - 10.11648/j.ijfbr.20190504.13
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 76
EP  - 90
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20190504.13
AB  - The purpose of this research was to investigate the nature of the relationship between board diversity and financial performance of deposit money Banks quoted on the Nigerian stock exchange. Based on extensive review of the literature, three board diversity variables were identified namely gender (measured by the proportion of women in the boardroom), non-executive directors (measured by the proportion of non-executive directors that make up the boardroom) and board size. Financial performance was measured using Return on Assets (ROA) and Return on Equity (ROE). The Fixed effects Panel data regression model was used to test the nature of relationship between the board diversity variables and the financial performance variables, using secondary data from the Banks annual financial statements covering the period from 2006-2017. The result of the analysis showed that gender diversity has a statistically significant positive impact on banks financial performance. On the other hand, the study also indicated that non-executive directors and board size do not have a significant impact on banks performance. Based on the findings from this study, it was therefore recommended that quoted deposit money banks in Nigeria should raise female proportions in their boardroom so as to improve financial performance.
VL  - 5
IS  - 4
ER  -

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Author Information

Sixtus Cyprian Onyekwere

Department of Economics, Aduvie Pre University College, Abuja, Nigeria
Samuel Wesiah

Department of Tax and Regulatory Services, PwC, Lagos, Nigeria
Shukriyya Nuuman Danbatta

Department of Accounting and Finance, University of Portsmouth, Portsmouth, UK

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APA Style

Sixtus Cyprian Onyekwere, Samuel Wesiah, Shukriyya Nuuman Danbatta. (2019). The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria. International Journal of Finance and Banking Research, 5(4), 76-90. https://doi.org/10.11648/j.ijfbr.20190504.13

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ACS Style

Sixtus Cyprian Onyekwere; Samuel Wesiah; Shukriyya Nuuman Danbatta. The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria. Int. J. Finance Bank. Res. 2019, 5(4), 76-90. doi: 10.11648/j.ijfbr.20190504.13

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AMA Style

Sixtus Cyprian Onyekwere, Samuel Wesiah, Shukriyya Nuuman Danbatta. The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria. Int J Finance Bank Res. 2019;5(4):76-90. doi: 10.11648/j.ijfbr.20190504.13

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@article{10.11648/j.ijfbr.20190504.13,
  author = {Sixtus Cyprian Onyekwere and Samuel Wesiah and Shukriyya Nuuman Danbatta},
  title = {The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {4},
  pages = {76-90},
  doi = {10.11648/j.ijfbr.20190504.13},
  url = {https://doi.org/10.11648/j.ijfbr.20190504.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190504.13},
  abstract = {The purpose of this research was to investigate the nature of the relationship between board diversity and financial performance of deposit money Banks quoted on the Nigerian stock exchange. Based on extensive review of the literature, three board diversity variables were identified namely gender (measured by the proportion of women in the boardroom), non-executive directors (measured by the proportion of non-executive directors that make up the boardroom) and board size. Financial performance was measured using Return on Assets (ROA) and Return on Equity (ROE). The Fixed effects Panel data regression model was used to test the nature of relationship between the board diversity variables and the financial performance variables, using secondary data from the Banks annual financial statements covering the period from 2006-2017. The result of the analysis showed that gender diversity has a statistically significant positive impact on banks financial performance. On the other hand, the study also indicated that non-executive directors and board size do not have a significant impact on banks performance. Based on the findings from this study, it was therefore recommended that quoted deposit money banks in Nigeria should raise female proportions in their boardroom so as to improve financial performance.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Relationship Between Board Diversity and Corporate Financial Performance: Empirical Evidence from Five Selected Commercial Banks in Nigeria
AU  - Sixtus Cyprian Onyekwere
AU  - Samuel Wesiah
AU  - Shukriyya Nuuman Danbatta
Y1  - 2019/08/15
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190504.13
DO  - 10.11648/j.ijfbr.20190504.13
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 76
EP  - 90
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20190504.13
AB  - The purpose of this research was to investigate the nature of the relationship between board diversity and financial performance of deposit money Banks quoted on the Nigerian stock exchange. Based on extensive review of the literature, three board diversity variables were identified namely gender (measured by the proportion of women in the boardroom), non-executive directors (measured by the proportion of non-executive directors that make up the boardroom) and board size. Financial performance was measured using Return on Assets (ROA) and Return on Equity (ROE). The Fixed effects Panel data regression model was used to test the nature of relationship between the board diversity variables and the financial performance variables, using secondary data from the Banks annual financial statements covering the period from 2006-2017. The result of the analysis showed that gender diversity has a statistically significant positive impact on banks financial performance. On the other hand, the study also indicated that non-executive directors and board size do not have a significant impact on banks performance. Based on the findings from this study, it was therefore recommended that quoted deposit money banks in Nigeria should raise female proportions in their boardroom so as to improve financial performance.
VL  - 5
IS  - 4
ER  -

Copy | Download