Board Structure and Firm Performance in Nigeria

Rogers Adebayo Akinsokeji; Edward Oladipo Ogunleye; Olawale Olamide Akindele

doi:doi:10.11648/j.ijber.20221101.12

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Board Structure and Firm Performance in Nigeria

Rogers Adebayo Akinsokeji, Edward Oladipo Ogunleye, Olawale Olamide Akindele

Published in International Journal of Business and Economics Research (Volume 11, Issue 1)

Received: 18 April 2021 Accepted: 15 May 2021 Published: 28 January 2022

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Abstract

Firm performance is determined in varying categorization of internal factors like managerial structure efficiency, corporate governance set up and ownership structure, which are made up of the firm broad structure, as this affects the ability of firms and control of external factors. In this study, the impact of board composition on firm performance in the manufacturing sector is examined. Primary data constructed from research instruments are based on questionnaires administered to 50 manufacturing firms in Nigeria and is aimed at identifying their corporate governance structure and to relate it to the overall performance of the firms. The qualitative response modeling techniques are also adopted for the empirical analysis. The results from the analysis shows that disclosure policy and measures aimed at guaranteeing board independence are very strong performance enhancing factors. On the other hand, conflict of interest among board members is found to exert significant negative impact on firms performance in the study. It is therefore recommended that corporate boards in manufacturing firms in Nigeria would be more effective with fewer but more committed members. Large-size boards may embellish conflict of interest among members and also decrease the sense of personal responsibility, with each board member taking refuge in the collective position.

Published in	International Journal of Business and Economics Research (Volume 11, Issue 1)
DOI	10.11648/j.ijber.20221101.12
Page(s)	8-13
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), 2024. Published by Science Publishing Group

Keywords

Broad Structure, Firm Performance, Manufacturing Firms, Nigeria, Primary Data

References

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APA Style

Rogers Adebayo Akinsokeji, Edward Oladipo Ogunleye, Olawale Olamide Akindele. (2022). Board Structure and Firm Performance in Nigeria. International Journal of Business and Economics Research, 11(1), 8-13. https://doi.org/10.11648/j.ijber.20221101.12

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ACS Style

Rogers Adebayo Akinsokeji; Edward Oladipo Ogunleye; Olawale Olamide Akindele. Board Structure and Firm Performance in Nigeria. Int. J. Bus. Econ. Res. 2022, 11(1), 8-13. doi: 10.11648/j.ijber.20221101.12

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AMA Style

Rogers Adebayo Akinsokeji, Edward Oladipo Ogunleye, Olawale Olamide Akindele. Board Structure and Firm Performance in Nigeria. Int J Bus Econ Res. 2022;11(1):8-13. doi: 10.11648/j.ijber.20221101.12

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@article{10.11648/j.ijber.20221101.12,
  author = {Rogers Adebayo Akinsokeji and Edward Oladipo Ogunleye and Olawale Olamide Akindele},
  title = {Board Structure and Firm Performance in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {1},
  pages = {8-13},
  doi = {10.11648/j.ijber.20221101.12},
  url = {https://doi.org/10.11648/j.ijber.20221101.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221101.12},
  abstract = {Firm performance is determined in varying categorization of internal factors like managerial structure efficiency, corporate governance set up and ownership structure, which are made up of the firm broad structure, as this affects the ability of firms and control of external factors. In this study, the impact of board composition on firm performance in the manufacturing sector is examined. Primary data constructed from research instruments are based on questionnaires administered to 50 manufacturing firms in Nigeria and is aimed at identifying their corporate governance structure and to relate it to the overall performance of the firms. The qualitative response modeling techniques are also adopted for the empirical analysis. The results from the analysis shows that disclosure policy and measures aimed at guaranteeing board independence are very strong performance enhancing factors. On the other hand, conflict of interest among board members is found to exert significant negative impact on firms performance in the study. It is therefore recommended that corporate boards in manufacturing firms in Nigeria would be more effective with fewer but more committed members. Large-size boards may embellish conflict of interest among members and also decrease the sense of personal responsibility, with each board member taking refuge in the collective position.},
 year = {2022}
}

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TY  - JOUR
T1  - Board Structure and Firm Performance in Nigeria
AU  - Rogers Adebayo Akinsokeji
AU  - Edward Oladipo Ogunleye
AU  - Olawale Olamide Akindele
Y1  - 2022/01/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221101.12
DO  - 10.11648/j.ijber.20221101.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 8
EP  - 13
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20221101.12
AB  - Firm performance is determined in varying categorization of internal factors like managerial structure efficiency, corporate governance set up and ownership structure, which are made up of the firm broad structure, as this affects the ability of firms and control of external factors. In this study, the impact of board composition on firm performance in the manufacturing sector is examined. Primary data constructed from research instruments are based on questionnaires administered to 50 manufacturing firms in Nigeria and is aimed at identifying their corporate governance structure and to relate it to the overall performance of the firms. The qualitative response modeling techniques are also adopted for the empirical analysis. The results from the analysis shows that disclosure policy and measures aimed at guaranteeing board independence are very strong performance enhancing factors. On the other hand, conflict of interest among board members is found to exert significant negative impact on firms performance in the study. It is therefore recommended that corporate boards in manufacturing firms in Nigeria would be more effective with fewer but more committed members. Large-size boards may embellish conflict of interest among members and also decrease the sense of personal responsibility, with each board member taking refuge in the collective position.
VL  - 11
IS  - 1
ER  -

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Author Information

Rogers Adebayo Akinsokeji

Department of Economics, Adeyemi College of Education, Ondo, Nigeria
Edward Oladipo Ogunleye

Department of Economics, Ekiti State University, Ado Ekiti, Nigeria
Olawale Olamide Akindele

Department of Economics, Adeyemi College of Education, Ondo, Nigeria

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Plain Text BibTeX RIS

APA Style

Rogers Adebayo Akinsokeji, Edward Oladipo Ogunleye, Olawale Olamide Akindele. (2022). Board Structure and Firm Performance in Nigeria. International Journal of Business and Economics Research, 11(1), 8-13. https://doi.org/10.11648/j.ijber.20221101.12

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ACS Style

Rogers Adebayo Akinsokeji; Edward Oladipo Ogunleye; Olawale Olamide Akindele. Board Structure and Firm Performance in Nigeria. Int. J. Bus. Econ. Res. 2022, 11(1), 8-13. doi: 10.11648/j.ijber.20221101.12

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AMA Style

Rogers Adebayo Akinsokeji, Edward Oladipo Ogunleye, Olawale Olamide Akindele. Board Structure and Firm Performance in Nigeria. Int J Bus Econ Res. 2022;11(1):8-13. doi: 10.11648/j.ijber.20221101.12

Copy | Download

@article{10.11648/j.ijber.20221101.12,
  author = {Rogers Adebayo Akinsokeji and Edward Oladipo Ogunleye and Olawale Olamide Akindele},
  title = {Board Structure and Firm Performance in Nigeria},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {1},
  pages = {8-13},
  doi = {10.11648/j.ijber.20221101.12},
  url = {https://doi.org/10.11648/j.ijber.20221101.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221101.12},
  abstract = {Firm performance is determined in varying categorization of internal factors like managerial structure efficiency, corporate governance set up and ownership structure, which are made up of the firm broad structure, as this affects the ability of firms and control of external factors. In this study, the impact of board composition on firm performance in the manufacturing sector is examined. Primary data constructed from research instruments are based on questionnaires administered to 50 manufacturing firms in Nigeria and is aimed at identifying their corporate governance structure and to relate it to the overall performance of the firms. The qualitative response modeling techniques are also adopted for the empirical analysis. The results from the analysis shows that disclosure policy and measures aimed at guaranteeing board independence are very strong performance enhancing factors. On the other hand, conflict of interest among board members is found to exert significant negative impact on firms performance in the study. It is therefore recommended that corporate boards in manufacturing firms in Nigeria would be more effective with fewer but more committed members. Large-size boards may embellish conflict of interest among members and also decrease the sense of personal responsibility, with each board member taking refuge in the collective position.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Board Structure and Firm Performance in Nigeria
AU  - Rogers Adebayo Akinsokeji
AU  - Edward Oladipo Ogunleye
AU  - Olawale Olamide Akindele
Y1  - 2022/01/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221101.12
DO  - 10.11648/j.ijber.20221101.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 8
EP  - 13
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20221101.12
AB  - Firm performance is determined in varying categorization of internal factors like managerial structure efficiency, corporate governance set up and ownership structure, which are made up of the firm broad structure, as this affects the ability of firms and control of external factors. In this study, the impact of board composition on firm performance in the manufacturing sector is examined. Primary data constructed from research instruments are based on questionnaires administered to 50 manufacturing firms in Nigeria and is aimed at identifying their corporate governance structure and to relate it to the overall performance of the firms. The qualitative response modeling techniques are also adopted for the empirical analysis. The results from the analysis shows that disclosure policy and measures aimed at guaranteeing board independence are very strong performance enhancing factors. On the other hand, conflict of interest among board members is found to exert significant negative impact on firms performance in the study. It is therefore recommended that corporate boards in manufacturing firms in Nigeria would be more effective with fewer but more committed members. Large-size boards may embellish conflict of interest among members and also decrease the sense of personal responsibility, with each board member taking refuge in the collective position.
VL  - 11
IS  - 1
ER  -

Copy | Download