Board Characteristics and Financial Performance of Firms: Evidence From Nigeria

Abstract This study investigates the impact of board characteristics on the financial performance of NGX 30 firms in Nigeria from 2014–2023. Using panel data techniques—including Random Effects and Mundlak Correlated Random Effects models—the analysis reveals that board independence significantly enhances Return on Equity, supporting Agency Theory. Conversely, gender diversity and governance committee size negatively affect performance, while board size, meetings, risk committee size, and institutional ownership show no significant influence. Findings highlight the primacy of substantive independence and balanced gender representation in strengthening governance–performance linkages within Nigeria’s evolving corporate environment. JEL Classification: M41, G34, O16