BOARD ATTRIBUTES AND MANAGERIAL EFFICIENCY

ABSTRACT

This study examines the relationship between board attributes and managerial efficiency using Nigerian commercial Banks. The Ex-post facto research design was used for this research design, it is most suitable because of the existence of secondary data for the study. A population of 24 commercial Banks were observed from which a sample of 23 were selected using Yamane Taro formula from a period of 10 years(2012-2021). It made use of descriptive statistics, regression analysis, correlation analysis of the various variables and the data which was derived from the financial statements of the 23 sampled Banks used in explaining board attributes and managerial efficiency which was proxied by efficiency ratio. The analysis reveals that an increase in board size is associated with improved managerial efficiency. Board Size was found to be positive and significantly associated with the Managerial Efficiency of financial companies in Nigeria. Board Independence 15 was found to be positive and significantly associated with the Managerial Efficiency of financial companies in Nigeria. Board Diversity was found to be positive and significantly associated with the Managerial Efficiency of financial companies in Nigeria. Ownership Concentration was found to be negative and significantly associated with the Managerial Efficiency of financial companies in Nigeria. Therefore, the study recommends that Financial institutions should carefully consider the size of their board, aiming for a balance between executive and non-executive directors to ensure effective decision-making. Emphasizing board independence is crucial for transparency and accountability, with regular assessments of director independence being essential. Actively promoting diversity, especially in terms of gender, can enhance decisionmaking and overall performance. Robust monitoring is necessary for companies with significant ownership concentration to prevent conflicts of interest. Continuous research and analysis are vital to adapt to evolving corporate dynamics.