SHAREHOLDERS’ FUND AND PROFITABILITY OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA THE MODERATING EFFECT OF BOARD GENDER DIVERSITY Section Articles

Abstract

This study examined the moderating effects of board gender diversity on the relationship
between shareholders’ fund and the profitability of listed consumer goods companies in
Nigeria. The study employed non-survey research design, using a sample size of seventeen
(17) companies from a total population of twenty-one (21) listed consumer goods
companies on the Nigerian Exchange (NGX) Group for a period of thirteen (13) years
(2011-2023). Data was extracted from the annual reports and accounts of the sampled
companies for the period under the study. Data was analysed using descriptive statistics to
provide a summary for the variables, correlation analysis carried out using the Pearson
correlation technique while multiple regression was used to test the hypothesis developed
for the study. The result showed that shareholders’ fund has positive and significant effect
on Return on Assets. On the other hand, board gender diversity has a negative and
insignificant effect on Return on Assets. Nevertheless, the result shows that the relationship
between shareholders’ fund and Return on Assets was moderated by board gender diversity
negatively. Therefore, the study concluded that board gender diversity moderates the
relationship between shareholders’ fund and the profitability of listed consumer goods
companies in Nigeria. On this note, the study recommended that the management of
sampled companies in Nigeria should consider the use of ordinary shares, preference
shares, retain earnings and reserve to finance their assets. Moreover, the management of
the listed consumer goods companies in Nigeria should comply with the directive of the
various regulatory bodies such as the Corporate Governance Code of Conduct (CGCC),
Financial Reporting Council of Nigeria (FRC) and the Central Bank of Nigeria (CBN)
among others which encourages boards to strive for gender-balance board, with a minimum
of 30% of female gender which can contribute to increase firm profitability.