Agency theory and corporate governance: A comparative study of Board diversity and financial performance in Nigeria

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Success Jibrin Musa, Ibrahim, Karimu Moses, Blessing Ejura Success


Using panel data, the paper looked at the impact of agency theory and board diversity in corporate governance on the financial performance of money deposit banks and a few chosen manufacturing enterprises in Nigeria over a five-year period from 2015 to 2020. As a dependent variable, the study employed Return on Asset and Return on Equity as a ratio versus board diversity of male to female, foreign members to non-foreign members, and age range of board members as explanatory variables. Data was gathered from annual reports, the Nigeria Stock Exchange, and the Bureau of Statistics, and it was determined that board diversity has a considerable impact on return on assets, but little or no impact on return on equity for banks.. Meanwhile, there is high significant of return on equity to the composition of board and little influence of return on asset on the board diversity in the case of manufacturing firms.

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