Is There a Positive Correlation Between Board Gender Diversity and Financial Performance in Publicly Traded Companies in Nigeria?

<p><span>This empirical study investigates the relationship between board gender diversity and financial performance in publicly traded companies in Nigeria. Using a quantitative approach, we analyzed data from 153 listed firms on the Nigerian Exchange (NGX) between 2014 and 2023. The study aims to provide insights into the impact of board gender diversity on financial performance, contributing to the ongoing debate on diversity's role in corporate governance. We employed regression analysis, controlling for audit reputation, firm size, and leverage. Board gender diversity was measured as the proportion of female directors. Our results indicate a significant positive correlation between board gender diversity and financial performance, measured by return on assets (ROA) and Tobin's Q. Specifically, a 20% increase in female board representation corresponds to a 4% increase in ROA. The findings suggest that Nigerian publicly traded companies can benefit from increased board gender diversity, leading to improved financial performance and competitiveness. This study provides evidence supporting the business case for board gender diversity in Nigeria, highlighting the importance of inclusive corporate governance practices. Policymakers and corporate leaders should prioritize initiatives promoting gender diversity on boards, while investors should consider diversity metrics in investment decisions. This study contributes to the scarce literature on board gender diversity in Sub-Saharan Africa, providing novel insights into the Nigerian context and informing evidence-based policy and practice.</span></p>