THE CORPORATE BOARD DIVERSITY AND THE FINANCIAL PERFORMANCE OF INSURANCE FIRM IN NIGERIA

Abstract

This study examined corporate board diversity and financial performance of  listed non- financial firms in Nigeria. The population of the study consists of all the listed non- financial firms in Nigeria. A sample of eighty-eight (88) firms was selected using Taro Yamane and data were collected over the period 2015 to 2020. Descriptive analysis comprising of descriptive statistics and correlation statistics as well as inferential statistics consisting of panel least squares, fixed effect, pooled data and system general method of moment estimation methods were used to undertake the data analysis. Findings obtained from the analysis revealed that Board gender diversity exerted significant impact on the financial performance of listed firms while board membership exerted a negative effect financial performance of listed firms in Nigeria. The study concluded that corporate board diversity are effective mechanisms at enhancing the operational and financial performance as well as growth opportunities of listed firms in Nigeria. The study recommends that regulators and firms need to design a framework to efficiently and effectively monitor the reputation of executive board directors and managers in firms to check mate agency costs, demonstration of opportunistic behavior capable of destroying the firm value, financial performance and shareholders wealth.