|Title: EFFECT OF BOARD CHARACTERISTICS ON CAPITAL STRUCTURE DECISION OF LISTED INSURANCE FIRMS IN NIGERIA|
Fasasi, Kazeem Adeola, Abdullahi Danjuma Zubairu and Jacob O. Ame
The study examines the effect of board characteristics on capital structure decision of listed insurance firms in Nigeria. The study employed ex-post facto research design. The study covers the period of 11 years (2011-2021), with the population of 22 listed insurance firms on Nigeria Stock Exchange (NSE). Secondary data was extracted from annual report of sampled firms and random effect model used as techniques for data analysis after breusch –pagan langrangian multiplier test and Hausman test were carried out. The result indicate that independent non-executive directors and board gender diversity have positive effect on financing decision but insignificant. Also the result reveal that board size exhibit negative effect on financing decision and it is significant at 5%. Furthermore, the study showed that board members expertise exhibits a positive effect of financing decision and is significant at 5%. The study concludes that board characteristics had significant effect on financing decision. The study recommended that policy makers on corporate governance should increase the number of independent directors with transparent process of appointment and ensure mandatory increase in the ratio of female directors at the board level in other to achieve significant contribution towards financing decision of listed insurance firms in Nigeria.
|Keywords: financing decision, panel regression, board characteristic.|