BOARD SIZE AND LIQUIDITY OF MANUFACTURING FIRMS IN NIGERIA: MODERATING ROLE OF FIRM SIZE

Abstract

Liquidity as a component of financial management essentially enables a company to meet shortterm obligations, seize financial or business opportunities and handle uncertainties. This study
examined the effect of board size on the liquidity of manufacturing firms in Nigeria, with a
moderating role of firm size. The period of the study is from 2009 to 2023. The study population
consist of thirty-one (31) listed manufacturing firms. The study used a purposive sampling
technique to arrive at a sample size of ten (10) listed manufacturing firms and with the support of
a filtering criteria. Data were sourced secondarily by using content analysis of annual reports and
accounts of listed manufacturing firms. The data collected were analyzed using multiple regression
technique. The study found that board size has a significant negative effect on the liquidity of listed
manufacturing firms in Nigeria. Furthermore, the moderating role of firm size on the effect of
board size on liquidity was discovered to be negatively significant. Therefore, the study
recommended that listed manufacturing firms should deemphasis on the size of board members
that are saddled with responsibility of taking liquidity decisions.