Abstract

An examination of how the financial performance of listed firms is affected by a combination of board structure and institutional ownership is the thrust of this study. To guide this study, hypothesis was formulated and tested (sig. at 0.01 level). Financial data on board structure, ownership and performance for 70 Nigerian listed firms were gotten from the database of MACHAME Ratios. Analysis was done by means of canonical correlation technique and findings indicate that the combination of board and ownership structure had significant association with measures of firm performance. Specifically, individual measures of board structure exert positive effect on firm financial performance, whereas individual measures of ownership structure had no significant positive association with measures of firm performance. On this note, recommendation among others was that given the significance of board structure measures to firms' performance, firms should take considerable measures in ensuring that decisions on the composition of board membership must be mindful of the role which size, independence and diversity (gender diversity) play to the overall organizational success. In effect, the ideal/optimal size, level of independence among others should not be treated with levity.