BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

The financial performance of Nigeria’s industrial goods firms has declined due to rising interest rates, weak corporate governance, and ineffective board oversight. This study examines the impact of board characteristics, including size, composition, and gender diversity, on the financial performance of listed industrial goods firms in Nigeria. Using an ex-post factor research design, secondary data was collected from annual reports of seven firms listed on the Nigerian Exchange Group between 2014 and 2023. The sample was selected through simple random sampling, focusing on firms with complete data and active listing status. Multiple regression analysis was used as technique of data analysis and multicollinearity tests confirmed the robustness of the findings. The results of the study revealed that, board size and composition negatively influenced financial performance, suggesting that smaller and more independent boards are more effective. In contrast, board gender diversity did not show a significant relationship with performance, while firm size had a positive effect. The study concludes that strategic board structuring, particularly optimizing size and composition, enhances financial outcomes among listed industrial firms in Nigeria. However, gender diversity, while important for governance, may require further contextual evaluation to determine its impact. Based on these findings, the study recommends that the management of listed industrial firms in Nigeria should prioritize board efficiency and composition to improve governance and profitability, while also considering broader diversity policies. These insights provide valuable guidance for corporate leaders, regulators, and investors seeking to strengthen governance practices in emerging markets.