EFFECT OF BOARD DIVERSITY ON VALUE OF LISTED COMMERCIAL BANKS IN NIGERIA
Liman Alhaji Mohammed, Muhammad Akaro Mainoma, Ismaila Olotu Abdullahi and Usman Musa Musa
Volume 11 Issue 1
Abstract
The study examine the effect of board diversity specifically board member with information technology knowledge, board gender and nationality of director on the firm value of listed commercial banks in Nigeria from 2012 - 2023. The study conceptualized IT knowledge on board, board gender and nationality of director through a literature review. Data for this study were obtained from thirteen (13) sampled commercial banks out of fifteen (15) within the study period and it was analyzed using panel regression. The analysis indicates the absence of multicollinearity among the study variables, and diagnostic tests confirmed the appropriateness of fixed over random effects model. The results showed that the board's member with IT knowledge has a positive influence on firm value of listed commercial banks and that board gender is negatively insignificant while nationality diversity is positive but statistical insignificant. Based on the findings, the study conclude that presence of an individual with IT knowledge on board of commercial banks is associated with an increase in firm value and these demonstrated the high magnitude in the relationship between board IT knowledge and banks performance. Similarly, female directors on the board of commercial banks are not fully integrated into the board’s decision making process. Also, nationality of directors on the board does not provide enough consideration on commercial banks firm value due to insufficient integration of foreign directors into the board's dynamics and other governance factors. Therefore, the study recommends that owners of commercial banks in Nigeria should appoint at least two individual with IT knowledge to serve a member of board of directors. Keywords: Board with IT Knowledge, Board Gender, Nationality Diversity, Firm Value
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