Board Attributes and Stock Returns of Listed Industrial Goods Companies in Nigeria

Abstract

The main objective of this study is to examine the effect of board attributes on stock returns of quoted industrial goods companies in Nigeria. A sample size of eleven (11) firms listed in the industrial goods sector of Nigerian Stock Exchange as at 2021 and the study applied a panel analysis. Board independence, board size and board financial expertise were used as predictor variables, and findings shows that board size, board independence and board financial expertise have positive significant effect on stock returns of quoted industrial goods companies in Nigeria. From the findings, the study recommended that the board of directors of industry goods firms should increase their monitoring capacity towards discretionary behavior of management activities by increasing the number of experts in accounting and finance on the board to at least three in order to improve the quality of earnings.