Gender Diversity on Corporate Boards: Evidence from the Nigerian Capital Market

Abstract

Purpose- The purpose of this paper is to investigate the gender diversity in publicly quoted companies in Nigeria.

Design/ methodology /approach- A content analysis of annual reports of all publicly quoted companies in the Nigerian Stock Exchange for 2012/2013 was undertaken to determine the gender diversity of corporate boards in Nigeria. The analysis was undertaken in total and along the sectorial divide of the market. Number count and percentages were used to determine the proportion of female directors, female chairmen and female managing directors in corporate boards in Nigeria.  Sectorial performances in terms of female directors in the corporate boards were then ranked.

Findings- The content analysis suggest that 9.67% of Nigerian directors are females while 4.3% of chairmen and managing directors respectively were females. Nigeria's position in global performance of 21 countries in respect of gender sensitivity in appointment of female directors was located at the 13^th position.

Research Limitations/Implications- The results of this study are based on single period content analysis and therefore could vary. The figures documented in this study should, therefore, be regarded as indicative rather than exhaustive.

Practical Implications- This study has practical implications for Financial Reporting Council of Nigeria as it gears to produce a mandatory unified corporate governance code for publicly quoted companies in Nigeria as it may want to make a statement for the first time on gender diversity in corporate boards in line with increasing global practice to that effect.

Originality Value- This is the first Nigerian study that has investigated gender diversity of corporate boards across the entire 12 sectors of the Nigerian capital market. In addition this study has located Nigeria among 21 Nations in terms of proportion of female directors holding board appointments.