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Foreign Expatriates on Board and Financial Performance: A Study of Listed Deposit Money Banks in Nigeria

Author

Listed:
  • Wisdom Okere

    (Department of Economics, Accounting and Finance, Bells University of Technology, Ota Ogun State)

  • Damilola Felix Eluyela*

    (Department of Accounting and Finance, Landmark University, Omu Aran, Kwara State Department of Accounting, Covenant University, Ota, Ogun State)

  • Adedoyin Ishola Lawal

    (Department of Accounting and Finance, Landmark University, Omu Aran, Kwara State)

  • Ibidunni Oyebisi

    (Department of Economics, Accounting and Finance, Bells University of Technology, Ota Ogun State)

  • Oluwasegun Eseyin

    (Department of Economics, Landmark University, Omu Aran, Kwara State)

  • Olabisi Popoola

    (Department of Economics, Landmark University, Omu Aran, Kwara State)

  • Toluwalase Eniola Awe

    (Department of Agricultural Economics, Landmark University, Omu Aran, Kwara State)

Abstract

Due to the recent financial scandals, there has been a growing need and debate amongst researchers on variables to strengthen the corporate governance of a firm. This study examined the relationship between foreign expatriates on board and financial performance of deposit money banks in Nigeria. Applying panel methodology for the period of 2008 to 2016 as well as other econometric analysis such as descriptive analysis, correlation analysis and Hausman test, the findings revealed a positive but insignificant relationship exist between foreign expatriates on board and financial performance of sampled deposit money banks in Nigeria. The study recommends that banks should ensure that they have an appropriate number of foreign directors on their board who have diverse skills and wealth of experience in order to make their performance on the banks significant. Also, developing countries who don’t have access to foreign directors can train their local directors in foreign countries so as to gain access to the benefits of global knowledge and experience.

Suggested Citation

  • Wisdom Okere & Damilola Felix Eluyela* & Adedoyin Ishola Lawal & Ibidunni Oyebisi & Oluwasegun Eseyin & Olabisi Popoola & Toluwalase Eniola Awe, 2019. "Foreign Expatriates on Board and Financial Performance: A Study of Listed Deposit Money Banks in Nigeria," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(2), pages 418-423, 02-2019.
    • Handle: RePEc:arp:tjssrr:2019:p:418-423
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    References listed on IDEAS

    as
    1. Masulis, Ronald W. & Wang, Cong & Xie, Fei, 2012. "Globalizing the boardroom—The effects of foreign directors on corporate governance and firm performance," Journal of Accounting and Economics, Elsevier, vol. 53(3), pages 527-554.
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    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    Cited by:

    1. Muhammad Mansoor & Nazima Ellahi & Arshad Hassan & Qaisar Ali Malik & Abdul Waheed & Naeem Ullah, 2020. "Corporate Governance, Shariah Governance, and Credit Rating: A Cross-Country Analysis from Asian Islamic Banks," JOItmC, MDPI, vol. 6(4), pages 1-15, November.
    2. A. E. Adegboyegun & E. Ben-Caleb & A. O. Ademola & J. U. Madugba & D. F. Eluyela, 2020. "Fair Value Accounting and Corporate Reporting in Nigeria: A Logistics Regression Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 301-310, April.
    3. Tankiso MOLOI & Tatenda NHARO & Modi HLOBO, 2021. "Relationship between Board Characteristics and Dividend Payment Policies," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 12(1), pages 30-52, June.
    4. Tony Ikechukwu Nwanji & Kerry E. Howell & Sainey Faye & Adegbola Olubukola Otekunrin & Damilola Felix Eluyela & Adedoyin Isola Lawal & Sunday Chinedu Eze, 2020. "Impact of Foreign Direct Investment on the Financial Performance of Listed Deposit Banks in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 323-347, April.
    5. Joseph U. Madugba & Kerry E. Howell & Tony Ikechukwu Nwanji & Sainey Faye & Ben-Caleb Egbide & Damilola Felix Eluyela, 2021. "Audit Committee Quality and Financial Reporting in Deposit Money Banks in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(2), pages 104-117, February.
    6. Iyabo Adeola Olanrele & Adedoyin I. Lawal & Ezekiel Oseni & Ahmed Oluwatobi Adekunle & Bukola, B. Lawal-Adedoyin & Crystal O. Elleke & Racheal Ojeka-John & Henry Nweke-Love, 2020. "Accessing the Impacts of Contemporary Development in Biofuel on Agriculture, Energy and Domestic Economy: Evidence from Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 469-478.
    7. Adedoyin Isola Lawal, 2023. "The Nexus between Economic Growth, Energy Consumption, Agricultural Output, and CO 2 in Africa: Evidence from Frequency Domain Estimates," Energies, MDPI, vol. 16(3), pages 1-27, January.

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