Author(s): ONUORAH A C, Osuji C C, Ozurumba, B A
This study examined how corporate board composition (CBC) measures and diversity index affect the performance of some Nigerian Deposit Money Banks (NDMBs). It covered four banks within a 20 year period (1999-2017) using both time series and cross sectional data of audited reports of the banks understudied. In a bid to answer the research question posed on how CBC measures and diversity index affect the banks performance, nine hypotheses were postulated. Panel data was sourced from the Nigeria Stock Exchange fact book. Data obtained was also regressed via the use of E-views statistical tool. The study revealed a linear relationship between CBC measures and performance of the banks studied. Furthermore, it showed that Directors' Competence was a paramount determinant of board effectiveness. This implied that; knowledge, skills, and abilities acquired by directors are critical for board effectiveness in the Nigerian banking industry. It was found that the board diversity measures adopted in this study had a significant impact on the Return on Owners' Equity (ROE). This study is a relatively new concept in Nigeria and hence, was intended to be exploratory. Further studies, using quantitative approach to support some of the findings in the present study is recommended.