Internal Determinants of Share Price Movements among Listed Companies in Nigeria: Does Gender Diversity in Boardroom Matter?

Edirin Jeroh

Abstract


ABSTRACT

This study focused on ascertaining the value relevance of gender diversity in determining share price movements among listed firms by obtaining evidence from a notable Sub-Saharan African (SSA) country - Nigeria. Panel data were collated from companies’ annual reports for 6 years covering 2012 – 2017. In estimating the models formulated to test the postulated hypotheses, the multiple regression technique was applied along with the fixed and random effect analyses. On a general note, findings indicate that the level of gender diversity in corporate boards are value relevant in determining movements in share prices since they have strong and positive effect on variations in share prices of listed firms. We therefore recommend amongst others, the passage and enforcement of legislations by the relevant and appropriate authorities and organs of regulatory controls in Nigeria, requiring all corporate boards to have a minimum proportion of female presence in their respective boardrooms. Overall, the outcome of this study contributes to existing body of empirical knowledge on the statistical link between movements in the prices of companies’ stocks and boardroom gender diversity.

Keywords: Gender diversity; board structure; equity stock; earnings; financial reports; firm performance.

ABSTRAK

Kajian ini difokuskan untuk memastikan relevansi nilai kepelbagaian jantina dalam menentukan pergerakan harga saham di antara syarikat tersenarai dengan mendapatkan bukti dari negara Afrika Sub-Sahara (SSA) terkenal - Nigeria. Data panel disusun dari laporan tahunan syarikat selama 6 tahun merangkumi 2012 - 2017. Dalam menganggarkan model yang dirumuskan untuk menguji hipotesis yang didalilkan, teknik regresi berganda diterapkan bersama dengan analisis kesan tetap dan rawak. Secara umum, penemuan menunjukkan bahawa tahap kepelbagaian jantina di dewan korporat adalah nilai yang relevan dalam menentukan pergerakan harga saham kerana ia mempunyai kesan yang kuat dan positif terhadap variasi harga saham syarikat tersenarai. Oleh itu, kami mengesyorkan antara lain, pelaksanaan dan penguatkuasaan undang-undang oleh pihak berkuasa yang relevan dan tepat serta organ kawalan peraturan di Nigeria, yang mewajibkan semua lembaga korporat mempunyai bahagian minimum kehadiran wanita di dewan masing-masing. Secara keseluruhan, hasil kajian ini menyumbang kepada pengetahuan empirikal yang ada mengenai hubungan statistik antara pergerakan harga saham syarikat dan kepelbagaian jantina di dewan.

Kata kunci: Kepelbagaian gender; struktur lembaga; saham ekuiti; pendapatan; laporan kewangan; prestasi firma


Keywords


Keywords: Gender diversity; board structure; equity stock; earnings; financial reports; firm performance

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