Corporate Board Meeting Frequency and Financial Performance of Listed Building Materials Companies in Nigeria
- June 10, 2018
- Posted by: RSIS
- Category: Management
International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue V, May 2018 | ISSN 2454-6186
SABO Usman
Abstract: – The study examines the impact of corporate board meeting frequency on financial performance of listed building materials companies in Nigeria. The population of the study is made up of 12 listed building materials companies in Nigeria out of which 9 companies are selected to form the sample. The linear regression is used in analyzing the data. The findings of the study reveal that corporate board meeting frequency has positive and insignificant impact on financial performance. The firm size has positive and significant impact on financial performance of listed building materials companies in Nigeria. The study recommends that the number of meetings of the board of directors of these companies should not be more than eight (8) times in a financial year. The listed building materials companies in Nigeria should take measures to improve on the assets maintenance, assets renewal, leasing and hire purchase of assets which improve significantly the return on assets of such companies. These recommendations could be implemented by issuing an improved code of corporate governance by the central bank of Nigeria and Nigeria security and exchange commission.
Keywords: Corporate Board, Frequency of Board Meeting, Financial Performance, Building Materials, Central Bank of Nigeria, Nigeria Security and Exchange Commission.
I. INTRODUCTION
The frequency of board meetings is an indicator of the efficiency and effectiveness of the board in monitoring and deliberation of decisions. Board meeting is the number of board meetings held by directors within a financial year. Johl, Kaur and Cooper (2015) claim that board meetings and attendance of the meetings are considered to be important channels through which directors obtain firm’s information that will enable them to fulfill their monitoring role.
