Interlocking Board Membership and Financial Performance of Publicly Quoted Companies in Sub-Saharan Africa

This study investigated the effect of interlocking board membership on financial performance of publicly quoted companies in sub-Saharan Africa. Ex-post facto research design was adopted and secondary data were obtained from yearly audited annual reports and accounts of publicly listed companies. The study was conducted using sixty (60) publicly listed companies drawn from all sectors in three (3) countries of sub-Saharan Africa namely; Nigeria, Kenya and South Africa, from 2013–2023. Data obtained were analyzed using descriptive, post-estimation, and inferential statistical techniques. The estimation technique was the generalized method of moment and the results revealed that interlocking board membership insignificantly influence financial performance proxied by return on assets of the publicly listed companies in sub-Saharan Africa. The implication of the finding is that board interlocking board membership is not a major driver of performance of quoted companies in sub-Saharan Africa. The study recommends among others that interlocking board membership should not be encouraged as the study found it insignificant in explaining financial performance.