BOARD CHARACTERISTICS AND CASH VALUE ADDED OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examined the relationship between board characteristics and cash value added of listed deposit money banks in Nigeria for a thirteen year period covering from 2010-2022. Board size, board gender diversity and board independence were used to proxy board characteristics, while cash value added served as the dependent variable. In line with the objectives of the study, three hypotheses were formulated. Ex-Post facto research design was employed. Thirteen (13) listed deposit money banks constituted the sample size of this study. Secondary data were extracted from the annual reports and accounts of the sampled firms and were analyzed using E-Views 10.0 statistical software. The study employed inferential statistics using Pearson correlation and Panel Least Square (PLS) regression analysis. Findings from the empirical analysis showed that there is a significant and positive relationship between board size and cash value added (β1=0.035453; p-value = 0.0000<0.05); a significant and positive relationship between board gender diversity and cash value added (β2=0.070263; p-value = 0.0000<0.05); a significant and positive relationship between board independence and cash value added (β3=0.025593; p-value = 0.0000<0.05) of listed deposit money banks in Nigeria at 5% level of significance respectively. Conclusively, board characteristics significantly relate with and cash value added of listed deposit money banks in Nigeria. It was recommended inter alia that considering the positive relationship between board characteristics and cash value added, it is suggested that company boards should have an independent majority which is more likely to consider the best interests of shareowners first, also is likely to foster independent decision-making and to mitigate conflicts of interest that may arise.