Board Characteristics and Firm Value: Evidence from Listed Firms in Nigeria

The study investigated the impact of board characteristics (including board size, board independence and gender diversity) on firm value indicators (Market Capitalization and Earnings Per Share) among companies listed on the NGX 30 index. The study used audit quality as control variable. The study used secondary data covering 2014 to 2023. Robust Pooled Regression Analysis was adopted. The study found that board independence has significant positive influence on firm value under the two models. The study showed mixed findings for the impact of board size on firm value on both models. The study found that board size has significant positive impact on firm value under model 1 (MCAP) but insignificant positive impact on model 2 (EPS). The findings of this study on gender diversity are mixed on both models used. The results show gender diversity has significant negative effect on firm value under model 1 but show it has significant positive impact on firm value under model 2. The findings of this study on audit quality are mixed on both models. Audit quality has significant positive effect on firm value under model 1 but shows significant negative impact under model 2. The study recommended that the ratio of independent directors to the entire board size should be enhanced by shareholders at its annual general meetings and policy makers should mandate higher number of independent directors in the composition of the board.