Female Board Representation and Corporate Tunneling: Evidence from Listed Manufacturing Firms in Nigeria

This study investigated the impact of board gender diversity (BGD), firm size (FS), and leverage (LEV) on board compensation burden (BCB) in listed Nigerian manufacturing firms. Utilizing robust linear regression techniques to correct for heteroskedasticity and outliers, the study draws on a panel dataset of 451 observations across 36 firms. The Breusch-Pagan and Lagrangian Multiplier (LM) tests indicated significant heteroskedasticity and the need for a robust estimation method. Results show that firm size and leverage have significant negative impacts on board compensation burden, suggesting that larger firms and highly leveraged firms tend to reduce the proportion of operating expenses allocated to board compensation. However, the relationship between board gender diversity and board compensation burden was found to be statistically insignificant. The study recommends that firms, particularly smaller and highly leveraged ones, adopt more stringent governance policies to effectively manage board compensation. Additionally, while board gender diversity is encouraged, further research is needed to explore its direct impact on board compensation practices.