Determinants of Board Size and Its Composition: Evidence from Nigerian Manufacturing Sector
This paper examines the determinants of corporate board size and its composition in Nigeria using listed manufacturing firms as study area. The objective of the paper is to determine the effect of firms’ characteristic on board size. The study collected secondary information from thirty listed ma...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Commerce & Manangement Studies, University of Kelaniya
2020-06-01
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| Series: | Kelaniya Journal of Management |
| Subjects: | |
| Online Access: | http://doi.org/10.4038/kjm.v9i1.7623 |
| Summary: | This paper examines the determinants of corporate board size and its composition in Nigeria
using listed manufacturing firms as study area. The objective of the paper is to determine the
effect of firms’ characteristic on board size. The study collected secondary information from
thirty listed manufacturing firms that met the requirement for selection as sample between
2006 and 2018 through Nigerian Stock Exchange’s Fact Books. Multiple regression analysis
was used as analytical technique. Using panel data OLS pooled method of estimation, the
paper found that firm size, profitability, and growth opportunities are strong determinants of
board size. Similarly, the results indicated that CEO-duality and profitability were
determinants of board composition in the study. It is recommended that appointment into
corporate board should be based on proven demonstration of high level of expertise, merit and
due consideration to firms’ characteristics instead of mundane factors that would not enhance
shareholders’ wealth.
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| ISSN: | 2279-1469 2448-9298 |