ASSESSMENT OF THE EFFECT OF BOARD INDEPENDENCE ON OPERATING EFFICIENCY IN LISTED CONSUMER GOODS FIRMS IN NIGERIA
Abdullahi Shafii Sayuti , Mohammed Shaba and Idris Ndagi Mohammed
Volume 5 Issue 2
Abstract
Recently, the consumer goods industry has experienced reduced profitability, driven by operational inefficiencies and economic instability. This highlights the importance for companies to streamline their processes and boost market value in order to stay competitive. This study examine the effect of board independence on operating efficiency in listed consumer goods firms in Nigeria. The information from 4 firms in 2019–2023 was examined using Random effect model. The findings revealed that board independent and firm age are important in enhance operating efficiency in consumer goods firms; while, the firm size is insignificant in improve operating efficiency of consumer goods firms. The study concludes by recommending that firms should adopt Company Allied Matters Acts of 2020 (CAMA) in order to increase the proportion of non-executive and independent directors to one-third of the total number of director on the board. Also, ensure transparency, and objectivity in the appointment of board members. In addition, firms should utilize institutional knowledge and experience accumulated over time to drive strategies decision as well as provide monitoring programs where experienced management can guide newer executives. Keywords: Board Independence, Operating Efficiency, Consumer Goods
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