BOARD CHARACTERISTICS AND CASH VALUE ADDED OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study assessed the relationship between board characteristics and cash value added of quoted deposit money banks in Nigeria. The proxies used to measure board characteristics are board size, board independence and gender diversity while cash value added served as the dependent variable for a period of thirteen (13) years spanning from 2008 to 2020. Based on the objectives of the study, three hypotheses were formulated. Ex-Post facto research design was adopted. The panel data were obtained from annual reports and accounts of sampled firms. The study employed descriptive statistics and inferential statistics using Pearson correlation and Panel Least Square (PLS) regression analysis. Specifically, the study found that a positive and significant relationship among board independence, gender diversity and cash value added while a negative, though, significant relationship exists between board size and cash value added. at 5% level of significance respectively. It was recommended amongst others that board independence should be increased through creativity and innovation in order to manage the relationship between the boards and stakeholders leading to an improvement in the firm financial performance.