BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED CONGLOMERATE FIRMS IN NIGERIA

Abstract

Lack of adequate return poses a threat to the long term survival of companies, conglomerate firms
inclusive. This study therefore investigates the impact of board characteristics on the financial
performance of listed Nigerian conglomerate firms. The main objective of the study is to ascertain
the level to which board characteristic influences financial performance of Nigeria conglomerate
firms. Secondary data and correlation research design were employed. The study’s population
constitutes all the six conglomerate firms listed on the Nigerian Stock Exchange as at 31st
December, 2013. All firms were chosen as sample using censor sampling technique. Multiple
regression was employed as a technique of data analysis. Findings show that non executive
directors, men directors and foreign directors have significantly and positively impacted on
financial performance while women directors have no significant impact on financial performance
of listed conglomerate firms within the study period. It is therefore concluded that board
characteristics impact on the financial performance of conglomerate firms within the period of the
study. Thus the study recommends that shareholders of conglomerate firms should ensure that
more executive, men and foreign directors are appointed on the board because of the role they
play in improving the financial performance of the firms.