BOARD CHARACTERISTICS AND AGENCY COST EMPIRICAL EVIDENCE FROM LISTED CONSUMER GOODS FIRMS IN NIGERIA

This study examines the impact of board characteristics on agency costs within the context of listed consumer goods firms in Nigeria, covering the period from 2014 to 2023. The specific focus of this study is to understand how board size, board independence, board gender diversity, and board meeting frequency influence agency costs. This study is hinged on ex- post facto research design, analyzing secondary data sourced from annual financial reports of a population of 21 listed consumer goods firms, but narrowed to a sample of 16 firms selected via purposive sampling technique requiring availability of annual financial report and complete information meant for the analysis. In analyzing the data and testing the hypothesis of this study, robust regression analysis technique was employed due to the presence of heteroscedasticity detected in the ordinary least square regression model. The findings reveal that board size has a statistically significant positive effect on agency costs, indicating that larger boards may lead to inefficiencies in asset utilization, thereby increasing agency costs. In contrast, the variables of board independence and board gender diversity showed insignificant impact on agency costs. However, the frequency of board meetings revealed a significant positive effect on agency costs, implying that while frequent meetings are intended to improve oversight, it may also lead to higher administrative costs and inefficiencies. This study recommends that management of listed consumer goods firms should be conscious of balancing the sizes of its boards and the same applies to meeting frequency to enhance governance effectiveness while minimizing agency costs. This study contributes to the existing body of knowledge by providing empirical insights into the dynamics of corporate governance within Nigeria's consumer goods sector. The findings have significant implications for corporate governance reforms aimed at improving firm performance by reducing agency- related inefficiencies.