Examining the Effect of Board Attributes on Firm Value of Listed Deposit Money Banks in Nigeria

Abstract

This study investigates the impact of board attributes on the firm value of listed Deposit Money Banks (DMBs) in Nigeria over an eleven-year period (2012–2022). Out of the fourteen (14) DMBs listed on the Nigerian Exchange Group (NGX) as of December 31, 2022, the study examined eleven (11) banks through purposive sampling. Data were obtained from audited annual reports, and Ordinary Least Squares (OLS) regression was used for analysis. Firm value was measured using Tobin’s Q, while board attributes were represented by board size, board composition, and board meeting frequency. The regression results indicate that board size has a significant negative effect on Tobin’s Q, board composition has an insignificant negative effect, and board meeting frequency has a positive but insignificant effect. The study concludes that none of the board attributes examined significantly enhance firm value. Therefore, it is recommended that corporate managers of listed DMBs in Nigeria optimize board size, ensure non-executive directors effectively fulfill their oversight roles, and make board meetings more strategic in achieving corporate goals.