How Much Can Board Attributes Influence Sustainability Performance of Firms? West African Evidence

Abstract

This empirical study investigated the extent to which board attributes influence sustainability performance. In more specific terms, it examined the magnitude to which board size and board independence, respectively, influence social, economic and environmental sustainability performance. The study employed ex-post facto annual information published by 21 industrial goods firms listed on Nigerian Exchange (NGX) Group from 2012 to 2021. The study hypotheses were tested using ordinary least squares regression techniques. Findings from this study revealed that board size has a significant negative influence on social and environmental sustainability performance, while board independence has a significant positive influence on environmental sustainability performance. It is, therefore, concluded that board attributes significantly influence sustainability performance. Consequently, this study recommends, among others, that: there is a need to build the corporate Board in such a way that there would be a higher proportion of non-executive (outside) directors than executive (inside) directors, as this would enhance environmental sustainability performances of the companies and moderately lower number of directors should be kept in the Board for more efficient and effective decision process.