Board Capital and Market Performance of Listed Consumer Goods Firms in Nigeria

Kazeem Akanfe Soyinka, Olusola Esther Igbekoyi and Elijah Oladeji Oladutire
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Kazeem Akanfe Soyinka: Department of Accounting, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria.
Olusola Esther Igbekoyi: Department of Accounting, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria.
Elijah Oladeji Oladutire: Department of Accounting, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria.

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 11, 1188-1206

Abstract: The increasing public concern for credibility and human capital reputation have greater the need to query the value driven potential of companies’ boards. The study investigated the effect of board capital on market value of firms using board education, board prestigious education, board interlocking and board members external roles as study focus. Data were sourced from the annual reports of listed consumer goods firms for the period of 2013 to 2022. The study covered the entire 20 consumer goods firms listed on the Nigeria Exchange Group as at 31st December, 2022 using census sampling method. Data collected were analysed using descriptive statistics, correlation analysis, and pooled panel least squares regression analysis. The findings from the study reveals significant negative effect of board education on market performance, board prestigious education exhibited significant positive effect on market performance. Also, board interlocking shows significant positive effect on market performance while board members external roles exhibited insignificant negative effect on market performance of consumer goods firms in Nigeria. The study concludes that the quality of the members that constitutes the boards of Nigeria companies, enhances their market performance. The study recommends that firms should consider prioritizing board members with prestigious educational backgrounds and strategically foster board interlocking relationships. Additionally, firm should re-evaluate the impact of general board education and external roles to align with market performance goals.

Date: 2024
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