Firm Performance and Board Political Connection: Evidence from Nigeria

Abstract

This study explores whether board political connection is important to firms performance in Nigeria which has a growing financial market. The study also provides a descriptive analysis of firms whose board members are politically connected in the context of Nigeria, with a special focus on their corporate governance features. A total of thirty listed firms in the Nigerian Stock Exchange were used. Secondary sources of data were used. The research data were analyzed based on regression analysis using ordinary least square method and correlation analysis .The empirical findings revealed that there is no significant positive relationship between board composition, board political connection and firm performance. There is a negative relationship between board size and firm performance. Therefore, managers should lay appropriate policy in order to maximize firm performance as well as organizing the firm’s resources.

Keywords: Firm Performance, Political connection, Board Size, Board Composition.