EFFECT OF BOARD CHARACTERISTICS ON ASSET QUALITY: EVIDENCE FROM COMMERCIAL BANKS

Authors

  • Anastasia Nma Sylvanus Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Author
  • Pius Vincent Chukwubuikem Okoye Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Author
  • Nestor Ndubuisi Amahalu Department of Accountancy, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Author
  • Juliet Chinyere Obi Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria. Author
  • Amara Priscilia Ozoji Department of Accountancy, University of Nigeria, Enugu, Enugu State, Nigeria. Author

Keywords:

Board Gender Diversity, Boared Size, Non-Performing Loan Ratio

Abstract

The study investigated the effect of board characteristics on asset quality management among listed commercial banks in Nigeria, using board size, and board gender diversity on non-performing loan ratio of listed commercial banks in Nigeria. The study adopted an ex-post facto research design. Data collection was carried out using secondary method, whereby relevant data were extracted from the annual reports of the sampled banks over a decade, spanning from 2013 to 2023. The data collected were descriptively analyzed and the hypotheses were tested using Pooled Estimated Generalized Least Squares at 5% significance level. The study found that board size has a significant positive effect on non-performing loan ratio of listed commercial banks in Nigeria; board gender diversity has a significant negative effect on non-performing loan ratio of listed commercial banks in Nigeria. The study recommends among others that board nomination committees should actively promote gender diversity on their boards, while also providing necessary support and resources to ensure equal participation and influence in decision-making processes.

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Published

2025-01-03

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Section

Articles