An Assessment of Non-Executive Directors Influence on the Operating Profits of Manufacturing Firms in Nigeria
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2018, Vol 8, Issue 2
Abstract
The debate of whether board composition in the form of representation of non-executive directors may add value to the firm’s performance is widely covered in the corporate governance literature. The main purpose of this study is to assess the non-executive board on operating profits of manufacturing firms in Nigeria. The study adopted content Analysis using a cross sectional survey among 20 selected manufacturing firms listed in Nigeria Stock Exchange. Data were obtained from the financial statement of the various organizations. Inferential statistics of linear regression was used for the hypothesis. The result (0.06175656 with p-value of (0.004357858) of the study shows significant at 1% probability level of significance, data observed confirm that pNED has a negative coefficient of -0.09416348 with a p-value of 0.0101306) which is statistically significant.. It was concluded that proportion number of directors to a large extent affects operational profit of manufacturing firms. Therefore, it can be concluded that manufacturing firms in Nigeria can increase their efficiency as well as overall profitability by maintaining a balanced non-executive members in their firm, as a result the firms can maximize their operational efficiency and profitability.
Authors and Affiliations
Sylvester Ikechukwu Ejike
Keywords
Related Articles
- EP ID EP364779
- DOI 10.6007/IJARAFMS/v8-i2/4048
- Views 104
- Downloads 0
Some Issues with the Establishment of Financial Safety Net: Evidence from Bosnia and Herzegovina
Challenges of News Policy in the Islamic Republic of Iran Broadcasting (IRIB). A Qualitative Study
Policy-making plays an important role in the sphere of public media and shapes the sphere of communications in any society. Study of the process of media policy and the way a proper policy could be made so to accomplish...
Comprehensive Income and Net Income, Which is more powerful in predicting Future Performance
The aim of this research is to compare the ability of comprehensive income and net income to predict companies' future performance in emerging markets by studying industrial companies in Jordan, and to achieve the purpos...
Accounting Process for Government Grants in Hazelnut Production within the Framework of International Accounting Standards: Turkey Sample
Risk Modelling in Healthcare Markets: a Comparative Analysis of three Risk Measurement Approaches