EFFECT OF BOARD CHARACTERISTICS ON MARKET VALUE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

The repercussions of corporate failures have sparked heated debates among regulators, policymakers, and practitioners, prompting urgent calls for robust governance reforms to restore market trust and stability. Therefore, this study examines the impact of board characteristics specifically board independence, financial expertise, female directors, and board remuneration on the market value of listed consumer goods firms in Nigeria. Employing an ex-post facto research design, panel data spanning from 2013 to 2022 from nineteen consumer goods ÿrms listed on the Nigerian Exchange Group (NGX) were analyzed. Dynamic panel regression was used to explore the relationships between board characteristicsandmarketvalue,controllingforÿrmsize. Theanalysisrevealsasigniÿcant negativee ectofboardindependenceonmarketvalue,Conversely,boardÿnancialexpertise demonstrates a signiÿcant positive impact on market value, also female directors also show a positive inŒuence on market value. While board remuneration has a positive insigniÿcant e ect on market value of listed consumer goods ÿrms in Nigeria. Based on these findings, recommendations are proposed to strengthen corporate governance practices in Nigerian consumer goods firms, including revising board independence guidelines, promoting gender diversity, and aligning board remuneration with performance metrics.