Economics at your fingertips  


Akinwunmi Jelil Owolabi Sunday Akintoye Rufus
Additional contact information
Akinwunmi Jelil Owolabi Sunday Akintoye Rufus: Babcock University, Postal: Department of Accounting,, Ilishan Remo, Ogun State.

International Journal of Accounting and Finance (IJAF), 2018, vol. 07, issue 2, 56-72

Abstract: The importance of the Board of Directors in their oversight function to organisational success cannot be overemphasized. However, the composition of such boards for optimal performance has been subjected to a number of criticisms overtime. Many past studies considered a number of factors relating to the board composition except that the combination of ethnicity and religion has not been given prominent attention especially in Nigeria. This study examines the relationship between board Ethnic and Religious diversity and performance of quoted manufacturing companies in Nigeria. The study adopts ex-post facto research design. Secondary data of purposively selected fifty three (53) listed Nigerian manufacturing companies from 2006 to 2015 were analyzed using descriptive and inferential statistics. The findings showed a positive but insignificant relationship between Ethnicity and performance measure of ROA (â= 0.008; p > 0.1). There was a negative and insignificant relationship with Tobin's Q (â = -0.884; p > 0.1). Board religious diversity was negatively and insignificantly related to ROA (â = 0.002; p > 0.1) and Tobin's Q (â = -0.260; p > 0.1). It was recommended that various stakeholders in board composition should always strive at incorporating value adding measures such as financial literacy, intellectual competence and consistency at meetings already established in literature, not diversionary and irrelevant considerations which lead to time wasting and resources dissipation. Again, regulatory bodies should emphasize and educate the stakeholders on the need for training of those charged with oversight functions in corporate environmentforoptimal performance.

Keywords: Board; Financial literacy; Intellectual competence; Diversity; Ethnicity; Religion; Financial performance (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

International Journal of Accounting and Finance (IJAF) is currently edited by Ben Ukaegbu and Folorunsho Ajide

More articles in International Journal of Accounting and Finance (IJAF) from The Institute of Chartered Accountants of Nigeria (ICAN)
Bibliographic data for series maintained by Daniel Akanbi ().

Page updated 2019-12-16
Handle: RePEc:ris:ijafic:0004