BOARD DIVERSITY AND FINANCIAL LEVERAGE OF LISTED COMMERCIAL BANKS IN NIGERIA (2012 - 2022)
Keywords:
Board Diversity, Board Independence, Board Size, Debt-To-Equity Ratio, Financial LeverageAbstract
This study ascertained the effect of board diversity on financial leverage of listed deposit money banks in Nigeria for the period of eleven (11) years spanning from 2012 to 2022. Board size, and board independence were used to proxy board diversity 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 Board Size has a significant and positive effect on debt to equity ratio (β1 = 0.105965; P-value = 0.0030); Board Independence has a significant and positive effect on debt to equity ratio (β1 = 0.015668; P-value = 0.0000). Conclusively, board diversity has a significant and positive effect on financial leverage of listed deposit money banks in Nigeria at 5% level of significance. 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
How to Cite
Issue
Section
License
Copyright (c) 2024 Journal of Global Accounting
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Articles submitted to JOGA should not have been published or are currently under review by another Journal. Kindly see the guide for the preparation of the manuscript for details. Successful submission of articles by author(s) for publication clearly implies that the work is not an infringement of any existing copyright warranty as JOGA reserves the right to be indemnified by the author(s) where any breach of such warranty is proven. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of JOGA once published unless otherwise agreed.
Permission clearance should be obtained by the author(s) where applicable for the use of any content of interest not originally created by them. This must be done before the submission of the article to JOGA. Failure to do so may lead to a lengthy delay in publication, as JOGA is unable to publish any article which has permissions pending. Thus, the rights JOGA requires are:
- Non-exclusive right to reproduce the material in the article or book chapters.
- Print and electronic rights.
- To use the material for the life of the work (for instance, there should be no time restrictions on the re-use of material).
Where tables, figures or excerpts of more than 250 words are reproduced from another source, it is expected that:
- Author(s) should obtain the necessary written permission in advance from any third-party owner of the copyright for the use in print and electronic formats of any of their text, illustrations, graphics, or other material in their manuscript. Permission must also be cleared for any minor adaptations of any work not originally created by the author(s). The author (s) should not assume that any content freely available on the web is free to use.
- Where the author adapts a significant number of any material, the author(s) must inform the copyright holder of the original work.
- Author obtains any proof of consent statements
- The author must acknowledge figure(s) and content adopted or adapted in work utilizing source(s) and further capture them in the list of references.
