Impact of Board Characteristics on Risk Management of Listed Industrial Goods Companies in Nigeria

Abstract

 This study investigates the impact of board characteristics on risk management in listed industrial goods companies in Nigeria from 2020–2024, a period shaped, by inflation, and exchange rate volatility. The study employed panel data from seven firms, yielding 35 firm-year observations. Board characteristics examined include size, independence, gender diversity, financial expertise, and meeting frequency, while firm risk management was measured using leverage and earnings volatility. Data were analysed using descriptive statistics, correlation analysis, and panel regression models, the findings reveal that board independence enhances leverage, whereas gender diversity and financial expertise are associated with more conservative debt policies. Frequent board meetings reduce leverage but correspond with higher earnings volatility, suggesting a trade-off between oversight and operational stability. Firm size is negatively related to leverage but increases volatility, while firm age enhances stability. The results highlight the importance of board composition over numerical size. The study recommends strengthening independence, gender diversity, and financial expertise to improve governance and financial resilience in Nigeria’s industrial goods sector. 

Keywords: board characteristics, risk management, earning volatility, listed industrial goods companies