Board Structure and Financial Performance of Listed Consumer Goods Firms in Nigeria

This study examines the effect of board structure on the financial performance of listed consumer goods firms in Nigeria, focusing on the influence of board size, board independence, and gender diversity. Panel data covering 16 firms from 2014 to 2023 were analysed using a robust fixed effects regression model, with Return on Assets (ROA) serving as the key performance metric. The findings reveal that board size has a significant negative effect on ROA, suggesting that excessively large boards may hinder strategic decision-making and increase agency costs. Board independence demonstrates a positive and statistically significant impact on ROA, underscoring the importance of non-executive oversight in enhancing firm value. However, board gender diversity exhibits a negative but statistically insignificant effect on ROA, indicating that gender inclusion on boards, though vital for equity, may not directly influence financial outcomes in the Nigerian context. Control variables such as firm size and leverage were also examined, with leverage showing a significant negative effect on ROA. These results highlight the nuanced role that board composition plays in shaping firm performance and underscore the need for optimal board design tailored to firm-specific and contextual realities. The study recommends maintaining a board size that balances diversity with decision-making efficiency and increasing the proportion of independent directors to strengthen governance practices. It also encourages further investigation into the institutional and cultural factors that may mediate the impact of gender diversity on firm performance in emerging markets.