Does Board of Directors Improve Profitability?

This analyzes whether or not there is a correlation between board of directors and profitability. For the purpose of this analysis, data is derived from firms listed on the trading floor of the Nigerian Exchange Group. The findings of a pooled ordinary least square regression analysis indicate that board meetings, independence, and board size may not lead to better profitability. Moreover, the results show that board meeting is negatively associated with profitability. Independent members do not provide additional efficiency required for better profitability. As for board size, the findings indicate that larger boards are associated with lower profitability. The findings provide insights into the effect of board size on firm profitability. The results are of interest to regulators, decision makers, policymakers and investors.