BOARD STRUCTURE EFFECTIVENESS AND FINANCIAL PERFORMANCE OF HOSPITALITY BUSINESSES IN NIGERIA

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Abstract

Despite the fact that board composition is a corporate governance instrument, there are conflicting and inconclusive theoretical and empirical views on the topic. The current study analyzed the board structure and financial performance of a Nigerian hotel company with a view to adding to the body of knowledge.

In order to achieve this, the Pooled Mean Group (PMG), Mean Group (MG), and Dynamic effect of Panel Autoregressive Distributed Lag (ARDL) specifications were used. The result shows that ownership control (OC), board size (BS), board composition (BC), and audit committee size (SA) are all positive and correlated with the financial performance of the hospitality firm using return on equity (ROE) as a proxy, according to the long-run and short-run panel ARDL estimates.

Based on these results, the report suggests that efficient board structures need to be fostered and the ratio of independent directors on boards maintained and even enhanced in Nigerian hospitality companies.

Keywords

Ownership, Board size, board composition, audit impact, financial performance.

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How to Cite

Ashibogwu, Nze Kingsley; Isoso, Monday Chukwugeku; Michael Rerhime; Onyeme, Monday John; Osita Monye. (2025). "BOARD STRUCTURE EFFECTIVENESS AND FINANCIAL PERFORMANCE OF HOSPITALITY BUSINESSES IN NIGERIA." ESUI Business and Management Journal, 2(1), 43-50.

Publication Timeline

  • Received: March 27, 2025
  • Accepted: March 27, 2025
  • Published: March 27, 2025
  • Last Updated: April 19, 2026