EFFECT OF BOARD INDEPENDENCE AND SIZE ON FINANCIAL DISTRESS OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

This study examined the effect of board independence and size on the financial distress of listed consumer goods firms in Nigeria for fifteen years (2009–2023). Published annual reports were used as secondary data from the sampled firms. The population consists of 13 consumer goods firms listed on the Nigerian Exchange as of 31st December 2023, and the sample size was made up of 13 consumer goods firms having the required data. Atman’s Z-score was used to measure FD. The study adopted the multiple regression technique in analyzing the data extracted. The study concluded that board size and board independence show significant effects on the financial distress of listed consumer goods firms in Nigeria. Based on these findings, this study recommends that the presence of independent directors on the board should be encouraged, as they will enhance monitoring mechanisms and reduce the propensity to likelihood of financial distress. Additionally, the board size is recommended to be sizable enough to have good management skills and different experiences to develop and perform the leading role and responsibilities to achieve effective governance.