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This research investigates how the political connections of board directors impact the financial performance of listed companies in Nigeria.

March 12, 2026Open Access

Political Connections and Financial Performance of Listed Companies in Nigeria

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This research investigates how the political connections of board directors impact the financial performance of listed companies in Nigeria.
Panel dataset of 151 firms listed on the Nigerian Exchange Group from 2010–2024
Ex-post-facto research design
Panel regression analysis with fixed-effects and random-effects estimators
Control for various factors: firm size, industry type, board size, and CEO characteristics
Robustness tests including variance inflation factors and heteroskedasticity tests
Political connections have a positive effect on Return on Assets (ROA)
No significant effect of political connections on Tobin's Q (TQ)
Political ties enhance short-term accounting profitability but reduce long-term market value
Control variables like firm size and CEO duality significantly influence financial performance

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Ex-post-facto analysis reveals political ties enhance short-term profitability but hinder long-term market value in Nigeria.

Onipe Adabenege Yahaya (2026) studied this question.

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