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This paper investigates the relationship between specific board attributes and the financial performance of publicly listed deposit banks in Nigeria, focusing on board size and composition, which are examined in relation to the measure of financial performance proxied by the return on assets (ROA). Drawing from agency theories, a panel data approach spanning 2011 to 2020 examines ten deposit banks listed on the Nigerian Stock Exchange (NSE), resulting in 60 firm-year observations. The study obtained data from the annual reports of selected banks and the official websites of the NSE. The model's validity is assessed through a multiple regression analysis. The findings of this study reveal a positive and significant association between board size and financial performance, highlighting the pivotal role of larger boards in enhancing deposit banks' financial outcomes on the NSE. In contrast, the study finds a negative and significant relationship between board composition and financial performance, suggesting that an increased board composition leads to decreased financial performance. Overall, this study underscores the significant impact of board characteristics on the financial performance of listed deposit banks in Nigeria. The implications of these findings are pertinent for policymakers and market regulators, as they offer valuable insights into the role of board characteristics in bolstering the financial performance of banks.
Ado et al. (Sun,) studied this question.