BOARD ATTRIBUTES AND FINANCIAL LEVERAGE OF LISTED COMMERCIAL BANKS IN NIGERIA

Authors

  • Purity Chinenyenwa Ubeh Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
  • Ugochukwu John Nwoye Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria https://orcid.org/0000-0003-4758-9214

Keywords:

Age Diversity, Board Attributes, Debt-To-Equity Ratio, Financial Leverage, Gender Diversity

Abstract

This study ascertained the effect of board attributes on financial leverage of listed deposit money banks in Nigeria for the period of eleven (11) years spanning from 2012 to 2022. Gender diversity and age diversity were used to proxy board attributes while debt-to-equity ratio was used to measure financial leverage. In line with the objectives of the study, two hypotheses were formulated.  Ex-Post facto research design was employed. Thirteen (13) listed deposit banks constituted the sample size of this study. Secondary data were extracted from the annual reports and accounts of the sampled firms and were analysed using E-Views 10.0 statistical software. The study employed both descriptive and inferential statistical. The inferential statistics was applied using Pearson correlation and Panel Least Square (PLS) regression analysis. Findings from the empirical analysis showed that gender diversity has a significant and positive effect on debt to equity ratio (β1 = 10.55505; P-value = 0.0000); Age Diversity has a significant and positive effect on debt to equity ratio (β1 = 0.073849; P-value = 0.0136). Conclusively, gender-diverse and age-diverse boards are better equipped to assess and manage financial risks, leading to more strategic and balanced decisions regarding capital structure and leverage. The study recommended that since gender-diverse boards influences the financial leverage of firms through better monitoring which is likely to increase confidence and encourage ownership by uninformed investors, hence, there is need for more female directors on the Board.

Downloads

Published

15-11-2024

Issue

Section

Articles

How to Cite

BOARD ATTRIBUTES AND FINANCIAL LEVERAGE OF LISTED COMMERCIAL BANKS IN NIGERIA. (2024). Journal of Contemporary Issues in Accounting, 5(1), 25-43. https://journals.unizik.edu.ng/jocia/article/view/4698

Similar Articles

1-10 of 52

You may also start an advanced similarity search for this article.