EFFECT OF BOARD GENDER DIVERSITY AND BOARD SIZE ON FIRM VALUATION OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study investigates the effect of board gender diversity and board size on the firm valuation of listed deposit money banks in Nigeria. Utilizing an ex-post facto design with a balanced panel dataset of 130 firm-year observations from 13 banks over a ten-year period (2015-2024), the study employs a Random Effects regression model to analyze the data, with Tobin's Q as the proxy for firm valuation. The findings reveal that board gender diversity has a positive and statistically significant effect on firm valuation, while board size showed a significant negative influence on valuation. The study, therefore, concludes that in the Nigerian banking context, a board's value-driving potential is closely linked to its gender composition and structural efficiency. Banks with higher female representation on their boards and smaller, more cohesive board structures tend to achieve higher market valuations. Based on these conclusions, it is recommended that banks and regulators prioritize policies that actively promote gender diversity on boards and advocate for leaner, more efficient board structures to enhance corporate governance effectiveness and maximize shareholder value. This research provides critical, evidence-based guidance for enhancing firm valuation in Nigeria's banking sector.