Mountain Top University Library

This study investigates the effect of board diversity on the financial performance of Nigeria's listed consumer goods sector from 2012 to 2022. A multiple linear regression analysis was used to analysis the effect between the dependent and the independent variables. Return on assets was regressed using board composition, board independence, board meetings, board gender, and independent auditors. The findings confirm that Board Composition has a significant (0.012) but negative effect(-0.006) with financial performance, Board Independence has an insignificant (0.162) but negative (-0.001)impact on financial performance of CGS, Board Meetings has insignificant (0.480) and negative (-0.003) impact on the financial performance of CGS, Board Gender has insignificant(0.308) but negative (-0.001)impact on the financial performance of CGS s and Independent Auditors has a significant (0.029) and positive (0.017) impact in the financial performance of Consumer Goods Sector in Nigeria. Durbin Watson was used to quantify the auto-correlation while basic linear regression testing was used to test the secondary data. The value obtained from the Durbin-Watson test is (<1.5 DW <2.5), which indicates a good-fit outcome rather than a superior one. From the results, the study came to the conclusion that Nigeria's consumer products industry had an excellent financial performance (ROA) Executives. Therefore, it is advised that management of the companies look at female participation in the firms as it has a negligible impact on financial performance to reduce the detrimental impact on asset financing on their performance and intensify efforts to use other financing options to enhance their performance and satisfy the executives.
Keywords: Board diversity; Financial performance, Board Composition, Board Independence, Board Meetings