BOARD DIVERSITY AND PERFORMANCE OF PUBLIC ENTERPRISES IN NIGERIA

Abstract

This research investigated the link between board diversity and the performance of publicly owned enterprises in Nigeria. The study particularly concentrated on matters pertaining to gender diversity within boards, emphasizing the proportion of males and females, as well as the educational qualifications of board members in relation to their professional backgrounds. An ex-post facto research methodology was adopted for the study. Time series data were collected from the audited annual financial reports of the chosen public enterprises. The sample comprised ten (10) out of a total population of twenty-five (25) commercial public enterprises selected through purposeful sampling. To analyze the proposed hypotheses, Descriptive Statistics, Pearson Correlation, and Multiple Regression analyses were applied using E-view version 22.00. The findings indicate that gender diversity on boards has a positive and significant effect on Return on Equity (ROE) within the public enterprises examined, and that the educational background of board members also has a positive and significant influence on performance (ROE). The research concludes that board diversity plays a vital role in contributing to the Return on Equity (ROE) of public enterprises in Nigeria. It is suggested that the selection of board members should prioritize gender diversity to improve performance, and that boards should mainly consist of individuals with extensive educational credentials across various disciplines to promote informed decision-making, thereby enhancing enterprise performance.