Effect of Board Structure on Firm Value of Listed Conglomerates Firms in Nigeria

Abstract

This study examines the effect of board structure on the firm value of listed conglomerate companies in Nigeria, with a focus on board expertise, board diversity, and board independence, while controlling for firm size. Using panel data from five listed conglomerates over a ten-year period from 2015-2024, the study employs a fixed effects regression model to account for firm-specific characteristics. The results reveal that board expertise, diversity, and independence all have positive and statistically significant effects on firm value, indicating that knowledgeable, diverse, and independent boards enhance strategic decision-making, governance quality, and investor confidence. Firm size was also found to positively influence firm value. Based on these findings, the study recommends that firms strengthen board competence, promote gender diversity, and ensure a higher proportion of independent directors to improve corporate governance and market valuation.