Effect of Board Attributes on the Financial Performance of Quoted Firms in the African Stock Market

Abstract

This study examined the effect of board attributes on the financial performance of quoted firms in the African stock market. The research adopted a descriptive ex post facto design and utilized secondary data obtained from the annual reports of selected firms covering the period from 2012 to 2022. A sample of six firms was purposively selected from the population of ten oil and gas firms listed on the African stock market. Panel regression techniques were employed for data estimation, while the Hausman test was used to determine the appropriateness of the random effects model over the fixed effects model. The empirical findings revealed that board ownership has a statistically significant effect on the financial performance of the firms at the 5% level of significance. Based on these findings, the study recommends, among others, that shareholders should consider allowing minimal share ownership for board members, as excessive board ownership was found to negatively affect profitability.