ABSTRACTThe study is focused on examining the effect of board of directors’ characteristics on banks performance. A total of eleven (11) banks were covered by the study. The study covered a period of (8) years (2010 – 2017). A panel regression analysis (fixed and random effect) was used to establish …
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ABSTRACTThe study is focused on examining the effect of board of directors’ characteristics on banks performance. A total of eleven (11) banks were covered by the study. The study covered a period of (8) years (2010 – 2017). A panel regression analysis (fixed and random effect) was used to establish the relationship that exist among the board of directors’ characteristics (board size, non-executive board of directors and female board of directors) and that of firms’ performance. The findings reveal that the performance trends for both ROE and ROA rise between 2010 to 2013 and then continuously fall from 2014 to 2016. It rose again in 2017. Also, 72.7 percent of the board of directors are independent directors, 17.5 percent of the board are females and, on an average, the 9 members constitute the size of listed banks board. Further, board size has significant positive effect on both ROE and ROA (bank performance). Likewise, significant negative effect exist between bank age and bank performance (ROA). Female board size has no significant effect on bank performance (ROE and ROA). Likewise, Bank size measured by total assets has no significant effect on listed banks performance (ROE and ROA). Finally, bank age has significant positive effect on performance (ROA). However, no significant effect exist between bank age and bank performance when return on equity (ROE) was used as a measure of banks’ performance. The study, therefore, concludes that female representations on listed banks board are relatively inadequate to yield the needed results in terms of enhancement of firms’ performance. The recommends that banks should make constant efforts to increase female representations on their board so as to fully benefit that comes long high female board size (Such as low appetite to risk).
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