Moderating Effect of Institutional Ownership on Board Attributes and Financial Performance of the Listed Manufacturing Firms in Nigeria

ABSTRACT: This study examines the relationship between board attributes and financial performance of listed manufacturing firms in Nigeria, focusing particularly on how institutional ownership plays a moderating role. The board attributes examined include financial expertise, size, independence, and nationality. By analyzing panel data from 30 listed manufacturing firms over a decade, the study uses regression analysis to explore both direct and interaction effects. The findings reveal that board independence has a significant effect on financial performance, while board nationality demonstrates a positive and significant association. However, board financial expertise and board size do not exhibit significant direct effects. Regarding the moderating role, institutional ownership significantly strengthens the relationship between board independence and financial performance, suggesting a complementary governance effect. In contrast, institutional ownership appears to weaken the positive relationship between board nationality and performance, indicating a substitution effect. No significant moderating influence is found for board financial expertise and size. The study suggests that regulators and policymakers should promote greater involvement of institutional investors in the Nigerian capital market.