Effect of board characteristics on firm value in Nigeria

Abstract

<strong>Abstract</strong> <strong>Purpose</strong>: This paper investigates the impact of board characteristics on firm value in Nigeria using 112 sampled NGX listed companies during the financial years 2009–2021. <strong>Design/Methodology/Approach</strong>: OLS pooled data regression model is applied for testing the hypotheses. In addition, an effort has been made to investigate the overall scope of share price in a broader context through a comprehensive analysis of share price across industry sectors, size and individual company-specific characteristics. <strong>Findings</strong>: The results indicate that board size, board independence and board share ownership have significant effects on firm value in Nigeria. Also, firm listing age and firm size have significant effects on firm value in Nigeria. <strong>Originality</strong>: The study provides evidence of the important role played by board of directors in enhancing share price of the company. It can guide the board of directors to enhance financial disclosures which consequently increases firm value. The analysis provides regulators, educators and investors an insight into the role of board of directors in firm value and thus helps them in improving their decision-making. It provides corporate policy makers some of the necessary inputs to chart the course of board of directors’ reforms and their enforcement. <strong>Limitations</strong>: The study is limited by the number of samples, specifically 112 listed companies. It is expected that further research can increase the total sample of companies and also by adding to the research period or using company samples from other countries.