Title

Board director reputation capital and financial performance of listed firms in Nigeria


Abstract

This study examined the impact of board director reputation capital on financial performance of listed firms in Nigeria. The population of the study consists of all the listed non- financial firms in Nigeria. A sample of fifty (50) firms was selected and data were collected over the period 2007 to 2018. Descriptive statistics and system general method of moment estimation methods were used to undertake the data analysis. Findings reveal that board director reputational capital exerted a positive and significant impact on financial performance of the firms. Board size and firm size were negative on firm financial performance in the reference period. The study concludes that board reputational capital is a significant driver of corporate financial performance in Nigeria irrespective of the size of the board. Based on the empirical findings, it is recommended that there is need for regulators to design a framework to efficiently and effectively monitor the reputation of executive board directors and managers in firms. This will assist to check mate agency costs, demonstration of opportunistic behavior capable of destroying the firm value, There is need for firms to encourage adequate interlocking members who have diverse professional training, high social net worth and experience (experience hypothesis) to positively influence effective management and financial performance of listed firms in Nigeria.


Keywords

board reputational capital, board size, firm size, financial performance, Nigeria


JEL classifications

M41 , M42


URI

http://jssidoi.org/ird/article/51


DOI


Pages

750-758


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Okpamen, Peter Ehizokhale
Elizade University, Ilara-Mokin, Nigeria https://www.elizadeuniversity.edu.ng
Articles by this author in: CrossRef |  Google Scholar

Ogbeide, Sunday Oseiweh
Ambrose Alli University, Ekpoma, Nigeria https://www.aauekpoma.edu.ng
Articles by this author in: CrossRef |  Google Scholar

Journal title

Insights into Regional Development

Volume

2


Number

4


Issue date

December 2020


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 265  |  PDF downloads: 108

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