EFFECT OF BOARD CHARACTERISTICS ON COMPREHENSIVE INCOME AMONG THE LISTED FIRMS IN NIGERIA

Abstract

This study investigates the impact of board characteristics on comprehensive income among listed firms in Nigeria, focusing on board size, independence, and gender diversity. Utilizing secondary data from 324 firm-year observations spanning 2019 to 2023, the study adopts multiple regression techniques. The findings reveal that board size and board independence positively influence comprehensive income (CI) and other comprehensive income (OCI) in both financial and non-financial firms. Larger boards contribute to enhanced oversight and decision-making, while independent directors improve governance and transparency.
However, board gender diversity does not demonstrate a significant positive impact on comprehensive income or other comprehensive income, suggesting that cultural and structural barriers may limit its effectiveness in Nigeria's corporate landscape. Firm size and leverage also play crucial roles, with larger firms and leveraged firms exhibiting better comprehensive income. The study concludes that optimizing board size and increasing board independence can enhance comprehensive income, while gender diversity requires further institutional support to be impactful. It is recommended that firms establish an optimal board size that balances expertise and efficiency, while regulators should enforce stricter corporate governance codes mandating a higher proportion of independent directors. Additionally, organizations should implement inclusive policies to ensure that gender diversity on boards translates into tangible financial benefits.