BOARD STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

Board structure represents one of the core issues in corporate governance. This study investigates the
influence of board structure on the financial performance of listed consumer goods companies in
Nigeria. The study utilised an ex-post factor research design, examining a population of 20 consumer
goods companies. The sample size consisted of 10 consumer goods companies listed on the Nigerian
Exchange Group (NGX), spanning from 2013 to 2022. The data for this study were obtained from the
published annual accounts and reports of the sampled firms. A random effect regression model and a
panel-corrected standard error regression were utilised for data analysis. The study showed that
expertise, and ownership of the board have an insignificant effect on return on equity. The study also
discovered that board expertise, and board ownership were found to have a significant negative
impact on the operating profit of the firms included in this study. Hence, the study strongly
recommended that members of the boards of listed consumer goods companies in Nigeria prioritise
matters directly linked to their companies, as these have a significant impact on financial
performance.