EFFECT OF BOARD ATTRIBUTES ON VALUE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA

Abstract

This study examines the effect of board-specific attributes on the value of listed non-financial firms in Nigeria. It seeks to understand the extent to which board size, board independence, board diligence, and board financial expertise influence value measured by Tobin’s Q. The study is motivated by the growing concerns regarding corporate governance practices and firm value dynamics in Nigeria’s volatile economic and business environment. The research adopts an ex-post facto design, relying on secondary data from 82 sampled listed non-financial firms spanning 2015–2024. Using panel multiple regression analysis, the study assesses the impact of board attributes on firm value while controlling for firm size. Findings from the study reveal significant insights into board governance mechanisms and their implications for firm value. Board size, board independence and board financial expertise have a significant positive effect on value, reinforcing the importance of board competence in decision-making and strategic oversight. Board diligence, proxied by board meeting frequency, exhibits an insignificant effect on value, the study concludes that Board attributes influence the value of listed non-financial firms in Nigeria.  The study recommends that non-financial firms in Nigeria should have at least two members with financial expertise to enhance decision-making and oversight capabilities, and also give priority to having independent directors who can provide unbiased oversight and strategic guidance.