WHICH NOMINATION COMMITTEE ATTRIBUTES MATTER IN IMPROVING FINANCIAL PERFORMANCE?
Sadiq Ishola Ibrahim, Onipe Adabenege Yahaya
Abstract
In this paper, we explore how a nomination committee of the board of directors of a firm influences the financial performance of the company. Recent articles have shown that nomination committee presence, size, independence, gender and meetings help to explain changes in the financial performance of a firm. Using data from Nigeria, covering 2008–2022 period, we verify that the previous literature overlooked the key role played by a group of variables denominated as nomination committee characteristics. Two variables (nomination committee presence and meetings) show to have roles in the decisions affecting firm financial performance. We also show that some control variables, such as firm size, firm listing age, and firm leverage, impact the financial performance of a firm. Finally, we show the bivariate relationship between nomination committee characteristics and firm financial performance. These findings are important to regulators, shareholders, boards, boards committees, auditors, managers, and scholars, since it opens space to further research. It also increases a body of knowledge in terms of the role of nomination committee in improving financial performance of a firm.