BOARD COGNITIVE DIVERSITY AND FIRM PERFORMANCE NEXUS: EVIDENCE FROM NIGERIA

International Journal of Management, Innovation & Entrepreneurial Research

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Field Value
 
Title BOARD COGNITIVE DIVERSITY AND FIRM PERFORMANCE NEXUS: EVIDENCE FROM NIGERIA
 
Creator Osayantin AIFUWA, Hope
MUSA, Saidu
Ojuolape GOLD, Nusirat
Kamaldeen USMAN, Muhammed
 
Subject Education Level Diversity
Education Background Diversity
Professional Membership Diversity
ROA
Tobin’s Board Cognitive Diversity
Education Level Diversity
 
Description Purpose of the study: This study examined the influence of board cognitive diversity on firm performance in Nigeria. The researchers investigated consumer goods firms listed in the Nigeria Stock Exchange from 2013 to 2018.
Methodology: This research is hinged on the positivist research philosophy; and the deductive research approach. The study adopted the multi-method quantitative research design. Data was hand-collected from the annual financial statements and firms’ websites of consumer goods firms. The researchers measured board cognitive diversity by educational level diversity, education background diversity, and professional member diversity; while performance was measured via financial performance (ROA) and market performance (Tobin's Q). Panel least squares were used to estimate the model of the study.
Main Findings: Results from the panel least squares regression revealed mixed findings on the nexus between the proxies of board cognitive diversity and firm performance in Nigeria. Specifically, we found that education level diversity and professional member diversity of board members positively and significantly affects market performance. In contrast, the educational background diversity of the board negatively and significantly affects the market performance of consumer goods firms in Nigeria. Furthermore, we found no evidence on the nexus between educational level diversity; educational background diversity; professional membership diversity of board members, and financial performance of firms investigated.
Implications/Applications: The researchers concluded that board cognitive diversity partially influences firm performance in Nigeria. The study recommended that firms in Nigeria, specifically consumer goods firms, should encourage more representation of board directors with a postgraduate degree. This is because they have advanced knowledge and expertise to improve the firm's performance.
Novelty/Originality of this study: This is pioneer research to investigate the influence of board cognitive diversity on firm performance in Nigeria.
 
Publisher GIAP Journals
 
Date 2020-10-24
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
"Peer-reviewed Article", "Non-refereed Book Review", "Invited Commentary'
 
Format application/pdf
 
Identifier https://giapjournals.com/ijmier/article/view/ijmier.2020.629
10.18510/ijmier.2020.629
 
Source International Journal of Management, Innovation & Entrepreneurial Research; Vol. 6 No. 2 (2020); 88-99
2395-7662
 
Language eng
 
Relation https://giapjournals.com/ijmier/article/view/ijmier.2020.629/3335
 
Rights Copyright (c) 2020 Hope Osayantin AIFUWA, Saidu MUSA, Nusirat Ojuolape GOLD, Muhammed Kamaldeen USMAN
https://creativecommons.org/licenses/by-sa/4.0
 

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