EFFECT OF CHARACTERISTICS ON STOCK RETURNS OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA
| dc.contributor.author | Adigizey, John Dollay | |
| dc.contributor.author | Wamu, Victoria Adigizey | |
| dc.date.accessioned | 2025-01-10T12:08:00Z | |
| dc.date.available | 2025-01-10T12:08:00Z | |
| dc.date.issued | 2022-08-06 | |
| dc.description.abstract | corporate firm's constituted board is expected to be a reliable internal tool to ensure good firm-performance for improved quality earnings. This study assessed the effect of board characteristics on stock-returns . of quoted consumer-goods companies in Nigeria. Independent variables used were board-independence, board-size and board-financial-expertise, while the dependentvariable was 'stock-returns'. The study adopted ex-post-facto research method; and used a purposive sample-size ofsixteen (16) firms selected from a population of the twenty-three (23) consumer-goods companies quoted on the Nigerian Exchange Group (NGX) as at 2020. From the annual financial reports of the selected firms, data were extracted for ten (10) years (2012-2021); and analyses done using multiple regression technique. The study's model had good- fit and diagnostic tests revealed analytical robustness and reliable results. The pooled OLS regression result showed that board-characteristics could predict stock returns' behavior in the consumer-goods sector, since board-independence and board-financial-expertise had positive significant effect on stock-returns, though board-size revealed insignificant effect. Recommendations are: more independent directors should be encouraged on the board, in an attempt to improving monitoring activities thatwill curb boisterous managementbehavior; with anticipated possibility of good dividend payments to shareholders; frirthermore, the firms' Board of Directors should focus on enhancing capacity to combat discretionary behavior of management activitiescorporate firm's constituted board is expected to be a reliable internal tool to ensure good firm-performance for improved quality earnings. This study assessed the effect of board characteristics on stock-returns . of quoted consumer-goods companies in Nigeria. Independent variables used were board-independence, board-size and board-financial-expertise, while the dependentvariable was 'stock-returns'. The study adopted ex-post-facto research method; and used a purposive sample-size ofsixteen (16) firms selected from a population of the twenty-three (23) consumer-goods companies quoted on the Nigerian Exchange Group (NGX) as at 2020. From the annual financial reports of the selected firms, data were extracted for ten (10) years (2012-2021); and analyses done using multiple regression technique. The study's model had good- fit and diagnostic tests revealed analytical robustness and reliable results. The pooled OLS regression result showed that board-characteristics could predict stock returns' behavior in the consumer-goods sector, since board-independence and board-financial-expertise had positive significant effect on stock-returns, though board-size revealed insignificant effect. Recommendations are: more independent directors should be encouraged on the board, in an attempt to improving monitoring activities thatwill curb boisterous managementbehavior; with anticipated possibility of good dividend payments to shareholders; frirthermore, the firms' Board of Directors should focus on enhancing capacity to combat discretionary behavior of management activities—inclusion of at least three accounting/financial experts might boost this campaign that will yield improved earnings quality. that will yield improved earnings quality. | |
| dc.identifier.citation | Adigizey, J.D. & Wamu, V.A. (2022). Effect of Board Characteristics on Stock Returns of Listed 1 Consumer Goods Companies in Nigeri | |
| dc.identifier.uri | https://keffi.nsuk.edu.ng/handle/20.500.14448/7571 | |
| dc.language.iso | en | |
| dc.publisher | Department of Business Administration, Nasarawa State University Keffi | |
| dc.subject | Consumer Goods | |
| dc.subject | Board Independence | |
| dc.subject | Board Size | |
| dc.subject | Financial Expertise | |
| dc.subject | Stock Returns | |
| dc.subject | Pooled OLS regression | |
| dc.title | EFFECT OF CHARACTERISTICS ON STOCK RETURNS OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA | |
| dc.type | Article |