DOES BOARD INDEPENDENCE MODERATE THE NEXUS INVOLVING OWNERSHIP FORMATION AND FINANCIAL PERFORMANCE? EVIDENCE FROM NIGERIAN EXCHANGE GROUP
Anas Idris Abdulwahab, Hussaini Bala, Abubakar Adamu , Onipe Adabenege Yahaya, and Ghousia Khatoon
Volume 9 Issue 2
Abstract
The purpose of this work is to examine the interaction of board independence on the association between corporate attributes with financial performance in the listed Nigerian financial Institutions. Empirical studies were reviewed to scrutinize the outcome of corporate attributes in connection to firm performance. As the result of the foregoing, this study introduces board independence as a moderator variable to interact between corporate attributes with firm performance of listed financial institutions in Nigeria. A correlational design was adopted. Population of this study consists of 50 listed financial institutions. While, the sample size of this study are 41 listed financial institutions on the floor of Nigeria Exchange Group (NGX) for the period ten years (2012 – 2021). Fixed effects regression model was employed to analyze the data of the study. Diagnostic test was conducted to confirm the validity of the statistical inferences of the study. The result shows that board independence moderated the correlation involving foreign ownership with financial performance of listed financial institutions in Nigeria. Also, the result found that institutional ownership is significantly correlated with the financial performance of listed financial institutions in Nigeria. This work recommends that non-executive should encourage concentration as it comes along with foreign technologies and ideas into the emerging markets. Research in future should replicate this topic in a domain other than financial institutions. Keywords: Board Independence, Liquidity, Institutional Ownership, Foreign Ownership, Leverage
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