Global Jou nal o Economic and
Finance Resea ch
Vol. 02(11): 1258-1269, No embe 2025
Home Page: h ps://gje .com/
e-ISSN: 3050-5348
p-ISSN: 3050-533X
DOI URL:h ps://doi.o g/10.55677/GJEFR/15-2025-Vol02E11 pg. 1258
Boa d Di e si y and Financial Pe o mance o Oil and Gas Fi ms Lis ed in
he Nige ian Exchange G oup
Amos Adeja e Ade ibigbe1, Olabisi Bola inwa Odewole2, Ti imisiyu Gbadebo Ogunme un3, Ka aya Olalade
Edun4
1,2,3,4C escen Uni e si y, Abeoku a, Nige ia
INTRODUCTION
The inancial pe o mance (FP) o oil companies in Nige ia plays a pi o al ole in he coun y's economic s abili y, as he oil and
gas (O&G) sec o is a majo con ibu o o go e nmen e enue, expo s, and GDP (Aluko e al., 2024). Nige ia’s oil indus y is
suscep ible o global commodi y p ice luc ua ions, esul ing in signi ican e enue swings and in luencing p o i abili y (Ezuem &
Ejeka, 2024). Mo eo e , he sec o aces challenges such as high ope a ional cos s, egula o y unce ain ies, and he complexi ies
o managing la ge-scale explo a ion and p oduc ion p ojec s (Ko o ee & Tekic, 2021).
Despi e hese challenges, Nige ian oil companies a e c ucial o p o iding ene gy, employmen , and echnological de elopmen .
The inancial pe o mance o hese companies is o en e alua ed h ough adi ional me ics like Re u n on Asse s (ROA), Re u n
on Equi y (ROE), and P o i Ma gin (Anozie e al., 2023), ex e nal ac o s, such as cu ency exchange a es and global oil demand,
also play a signi ican ole in shaping hei inancial ou comes (Yuso e al., 2024). Unde s anding Nige ian oil i ms' inancial
dynamics is essen ial o s akeholde s and policymake s s i ing o ensu e las ing sus ainabili y and g ow h in he indus y.
Financial pe o mance is a c i ical measu e o e alua ing he success and sus ainabili y o oil and gas i ms in Nige ia (Anozie e
al., 2023). Howe e , measu ing inancial pe o mance accu a ely can be challenging due o ex e nal ac o s such as luc ua ions in
commodi y p ices, egula o y changes, and he le el o deb (Ko o ee & Tekic, 2021). In addi ion, ea nings pe sha e (EPS) and
ea nings be o e in e es and axes (EBIT) can be in luenced by non-ope a ional ac o s like capi al s uc u e decisions and ax
policies, which may dis o he ue e lec ion o a company’s ope a ional e iciency (Awan & Sha i , 2024). Thus, isola ing he
e ec o he boa d di e si y (BD) on FP equi es ca e ul conside a ion o hese con ounding ac o s.
The O&G indus y in Nige ia is a key con ibu o o he na ional economy, and companies in his sec o a e unde cons an sc u iny
ega ding hei go e nance s uc u es (Aluko e al., 2024). Acco ding o W igh e al. (2024), boa d di e si y ends o imp o e
decision-making, inno a ion, and o e all pe o mance. Boa d di e si y encompasses gende (G_D), age (A_D), na ionali y N_D,
educa ional and p o essional ca ee (EP_D), and enu e di e si y (T_D) among he boa d membe s o O&G i ms in Nige ia.
Resea ch has shown ha di e se boa ds can imp o e decision-making p ocesses by b inging in a a ie y o pe spec i es, enhancing
KEYWORDS: Age di e si y, boa d
di e si y, inancial pe o mance, gende
di e si y, e u n on asse s.
JEL: L25; M14; G34
Co esponding Au ho :
Amos Adeja e Ade ibigbe
Publica ion Da e: 21 No embe -2025
DOI: 10.55677/GJEFR/15-2025-Vol02E11
License:
This is an open access a icle unde he CC
BY 4.0 license:
h ps://c ea i ecommons.o g/licenses/by/4.0/
ABSTRACT
This s udy in es iga ed how boa d di e si y a ec s he inancial pe o mance o
oil and gas i ms lis ed on he Nige ian Exchange G oup using a panel da a
eg ession app oach. Da a co e ing a decade (2014–2023) we e collec ed om
he inancial s a emen s o lis ed companies unde s udy. The Hausman es was
used o choose be ween ixed and andom e ec s models. The esul s e ealed
ha gende , age, na ionali y, and enu e di e si y showed s a is ically insigni ican
ela ionships wi h ROA and ROE, while educa ional and p o essional di e si y
nega i ely a ec ed ROE and EPS signi ican ly. Howe e , enu e di e si y
demons a ed a signi ican posi i e ela ionship wi h EPS. The s udy concluded
ha while di e si y is essen ial, excessi e di e si y in educa ional and
p o essional backg ounds can hinde inancial pe o mance, whe eas enu e
di e si y posi i ely in luences ea nings and ecommended he adop ion o a
s a egic app oach o boa d di e si y, ensu ing alignmen wi h o ganiza ional
goals, and le e aging enu e di e si y's bene i s o enhance sha eholde alue.
Amos Adeja e Ade ibigbe (2025), Global Jou nal o Economic and Finance Resea ch 02(11): 1258-1269
DOI URL:h ps://doi.o g/10.55677/GJEFR/15-2025-Vol02E11 pg. 1259
p oblem-sol ing, and os e ing inno a ion (Escandon‐Ba bosa & Salas‐Pa amo, 2024; Yakubu & Ouma ou, 2023). These ac o s
can lead o imp o ed go e nance p ac ices, u he in o med s a egic decisions, and imp o ed inancial ou comes.
Boa d di e si y is expec ed o add ess se e al challenges associa ed wi h measu ing inancial pe o mance, such as he dis o ion
caused by non-ope a ional in luences like managemen p ac ices o ex e nal economic ac o s (Aziekwe & Okegbe, 2024). Fo
ins ance, ha ing a mo e di e se boa d can imp o e o e sigh , leading o imp o ed isk managemen and ope a ional e iciency,
which could posi i ely impac inancial me ics like ROA, ROE, and EPS signi ican ly.
Boa d di e si y may help companies o e come ex e nal challenges such as ma ke unce ain y, egula o y a ia ions, and he impac
o commodi y p ice luc ua ions. The imp o ed go e nance s uc u e s emming om a mo e di e se boa d can os e be e long-
e m planning, ope a ional s a egies, and in es men decisions, which a e c i ical o sus aining inancial pe o mance in a ola ile
indus y (Dimingu & Mogaji, 2024).
Fu he mo e, boa d di e si y could mi iga e issues ela ed o capi al s uc u e, as di e se boa ds migh be mo e p uden in balancing
deb and equi y, he eby imp o ing inancial s abili y (Ho do a, 2023). Gene ally, boa d di e si y is expec ed o add ess he
complexi ies o e alua ing FP by enhancing s a egic decision-making, be e isk managemen , and op imizing FP in he p esence
o ex e nal ma ke luc ua ions.
Al hough he e is an inc easing wo ldwide acknowledgmen o boa d di e si y as a ac o ha enhances FP, esea ch examining his
connec ion in Nige ia's c ucial O&G indus y is sca ce. Cu en esea ch mainly cen e s on ad anced economies, as ound in Gha ios
e al. (2024) and Hosny and Elgha bawy (2022), o b oad co po a e go e nance issues wi hou isola ing he impac o speci ic
di e si y dimensions like gende , age, na ionali y, educa ion, and enu e on i m pe o mance, as was he case o Al Ismaili e al.
(2024) and Saida e al. (2024). This c ea es a signi ican knowledge gap in comp ehending he in luence o hese boa d a ibu es
on inancial ou comes like ROA, ROE, and EPS in Nige ian O&G companies. Wi hou hese insigh s, companies canno op imally
s uc u e hei boa ds o espond o isks and oppo uni ies speci ic o hei sec o . As a esul , wi hou con ex -speci ic analysis, oil
and gas companies migh no capi alize on he po en ial o di e se boa ds as s a egic esou ces o enhancing go e nance and
inancial sus ainabili y.
Mo eo e , he majo i y o empi ical esea ch conce ning boa d di e si y and pe o mance ocuses on sec o s ou side o O&G o
indus ies cha ac e ized by lowe ope a ional complexi y, as done by Masa’deh e al. (2024) and Pu wi o (2024). Due o he ola ili y
o he Nige ian O&G indus y, ma ked by changing commodi y p ices, unce ain egula ions, and socio-poli ical ins abili y, i is
c ucial o examine he wo kings o BD in his con ex . None heless, he exac ways in which di e si y ac o s con ibu e o s a egic
decision-making and esilience in his capi al-in ensi e sec o ha e no been he ocus o much sc u iny. The exis ing li e a u e
equen ly gene alizes indings ac oss a ious indus ies wi hou aking in o accoun he speci ic dynamics o oil and gas ope a ions,
esul ing in a lack o ac ionable insigh s o s akeholde s in his high- isk en i onmen .
In addi ion, con adic o y indings om he exis ing li e a u e e eal addi ional gaps ha equi e a ge ed in es iga ion. Some s udies
demons a e ha gende and o eign di e si y posi i ely in luence inancial pe o mance (Gha ios e al., 2024; Yunusa e al., 2024),
while o he s e eal insigni ican o e en nega i e impac s (Almaq a i e al., 2024; Saida e al., 2024), emphasizing he necessi y o
con ex ual alida ion in de eloping ma ke s such as Nige ia. Fu he mo e, he e has been no ho ough in es iga ion in o he join
e ec s o a ious aspec s o BD on pe o mance wi hin Nige ia's O&G indus y. This o e sigh hampe s a dis inc unde s anding
o whe he di e si y imp o es go e nance o simply mee s egula o y equi emen s wi hou p o iding eal inancial bene i s. This
s udy sough o add ess hese gaps by supplying empi ical e idence ega ding he ela ionship be ween BD and FP in Nige ia's O&G
sec o , p o iding insigh s essen ial o policy e o ms and enhanced co po a e p ac ices.
1.2 The Objec i e o he S udy
This s udy aimed o in es iga e he in luence o BD on he FP o O&G i ms lis ed on he Nige ian Exchange G oup (NGX).
Speci ic objec i es a e o:
i. e alua e he in luence o BD on he ROA o O&G i ms lis ed on he NGX;
ii. assess he in luence o BD on he ROE o O&G i ms lis ed on he NGX;
iii. examine he e ec o BD on he EPS o O&G i ms lis ed on he NGX.
2.0 LITERATURE REVIEW
2.1 Concep ual e iew
2.1.1 Financial Pe o mance
Financial pe o mance is a key measu e o a i m's success and sus ainabili y, pa icula ly o oil and gas i ms in Nige ia (Obioha,
2024), whe e ex e nal ac o s such as commodi y p ice luc ua ions and go e nmen egula ions play a signi ican ole. In he con ex
o his s udy, and acco ding o Ok a ian i e al. (2024), inancial pe o mance is e alua ed h ough speci ic me ics, namely e u n
on asse s (ROA), e u n on equi y (ROE), and ea nings pe sha e (EPS), o de e mine how boa d di e si y in luences hese ou comes
in he ace o he ex e nali ies. These me ics indica e he e iciency in he use o esou ces by an en i y, in gene a ing p o i o i s
sha eholde s, and c ea ing alue o i s s akeholde s.
Amos Adeja e Ade ibigbe (2025), Global Jou nal o Economic and Finance Resea ch 02(11): 1258-1269
DOI URL:h ps://doi.o g/10.55677/GJEFR/15-2025-Vol02E11 pg. 1260
Re u n on Asse s (ROA)
Ok a ian i e al. (2024) desc ibed e u n on asse s (ROA) as a measu e o a company's abili y o gene a e p o i ela i e o i s o al
asse s. I is a i ed a by di iding ne income by o al asse s. In he con ex o his s udy, ROA will be used o assess how boa d
di e si y in luences he e ec i eness wi h which a conce n uses i s esou ces o c ea e p o i . A mo e di e se boa d may b ing a ied
pe spec i es ha lead o be e decision-making, imp o ing he i m's ope a ional e iciency and, ul ima ely, i s ROA (Dimingu &
Mogaji, 2024).
Re u n on Equi y (ROE)
Re u n on equi y (ROE) is ano he impo an indica o o inancial pe o mance, calcula ed by di iding ne income by sha eholde s'
equi y (Ok a ian i e al., 2024). Acco ding o Ok a ian i e al. (2024), ROE measu es a company's abili y o gene a e p o i om
he in es men s made by i s sha eholde s. This s udy sough o in es iga e how di e si y in boa d composi ion, such as gende , age,
na ionali y, educa ion, and p o essional and enu e di e si y a ec s a i m's abili y o gene a e e u ns o i s equi y in es o s.
Dimingu and Mogaji (2024) asse ed ha di e se boa ds a e o en linked wi h imp o ed go e nance p ac ices and be e s a egic
decisions, which can posi i ely impac ROE.
Ea nings Pe Sha e (EPS)
Ea nings pe sha e (EPS) is a widely used me ic ha indica es he po ion o a company's p o i alloca ed o each ou s anding sha e
o common s ock (Pikūnas, 2023). The measu e is ob ained by calcula ing he ne income di ided by he numbe o he i m’s
o dina y sha es. In his s udy, EPS will be examined o de e mine how he composi ion o boa d membe s migh a ec p o i abili y
pe sha e. A di e se boa d could po en ially d i e s a egies ha enhance p o i abili y and inc ease sha eholde alue, leading o
imp o ed EPS.
2.1.2 Boa d Di e si y (BD)
Khan e al. (2024) s a ed ha boa d di e si y plays a c ucial ole in shaping go e nance p ac ices and in luencing he o e all inancial
pe o mance o i ms. This s udy ocused on a ious sizes o boa d composi ion; gende , na ionali y, age, educa ional and
p o essional, and enu e di e si ies, o unde s and hei e ec s on he FP o O&G en i ies in Nige ia. Di e se boa ds a e o en linked
o imp o ed decision-making, be e isk managemen , and enhanced inno a ion, which can ul ima ely con ibu e o a i m’s
p o i abili y and long- e m success (Dimingu & Mogaji, 2024). The ollowing sub-sec ions explo e each ace o boa d di e si y:
Gende Di e si y (G_D)
G_D is indica ed by he p esence o emales on he boa d, usually ep esen ed by he a io o emale membe s ela i e o he o al
numbe o membe s on he boa d. A na do i e al. (2023) opined ha gende -di e se boa ds a e belie ed o b ing a ied
pe spec i es, p omo e inclusi i y, and imp o e co po a e go e nance p ac ices. Resea ch has shown ha gende -di e se boa ds a e
mo e likely o conside a wide ange o s a egic op ions, leading o be e decision-making and inancial ou comes (Laique e al.,
2023).
Na ional Di e si y (N_D)
Na ional di e si y e e s o he ep esen a ion o a ious na ional g oups wi hin he boa d o di ec o s. This o m o di e si y can
p o ide i ms wi h insigh s in o di e en consume p e e ences, ma ke oppo uni ies, and isk mi iga ion s a egies ha may no be
appa en in a mo e homogeneous boa d (Kong e al., 2023). Conside ing he s udy’s popula ion, na ional di e si y could also e lec
he company's esponsi eness o na ionali y composi ion and social dynamics. O lieb and Sieben (2013) belie ed ha i ms may
be be e equipped o mo e h ough local and in e na ional ma ke s, po en ially leading o enhanced inancial pe o mance by
p omo ing a boa d wi h di e se na ional backg ounds. The in luence o N_D on inancial me ics such as ROA, ROE, and EPS
equi es explo a ion in his s udy.
Age Di e si y (A_D)
Age di e si y means he age ange o he boa d membe s, encompassing bo h younge and mo e senio indi iduals. Acco ding o
Ka siampa e al. (2024), a mix o age g oups on a boa d can lead o a balance be ween inno a ion and expe ience, os e ing bo h
c ea i e and well-in o med decision-making. Younge boa d membe s may b ing esh pe spec i es and a o wa d- hinking
app oach, while olde membe s may p o ide wisdom and a long- e m s a egic ision (Ka siampa e al., 2024). Age di e si y in
boa d composi ion may enhance go e nance by p omo ing a balanced app oach o isk and oppo uni y, hus po en ially imp o ing
he inancial pe o mance o oil and gas i ms (Ka siampa e al., 2024).
Educa ional and P o essional Di e si y (EP_D)
Acco ding o Issa e al. (2024), educa ional and p o essional di e si y deno es he a ie y o academic quali ica ions, p o essional
a ainmen , and expe ise ep esen ed on he boa d. A boa d wi h di e se educa ional and p o essional expe ience spanning ields
such as business, enginee ing, accoun ing, law, inance, and echnology can con ibu e o mo e holis ic decision-making and mo e
e ec i e o e sigh (Issa e al., 2024). In he oil and gas indus y, such di e si y can help add ess he complex challenges ela ed o
ope a ions, egula o y compliance, and inancial managemen (Issa e al., 2024). Escandon‐Ba bosa and Salas‐Pa amo (2024) opined
ha i ms may make mo e s a egic decisions ha lead o imp o ed inancial pe o mance by ha ing a well- ounded boa d wi h
di e en skill se s. This s udy will e alua e he ole o educa ional and p o essional di e si y in shaping he ROA, ROE, and EPS
o he popula ion o his s udy.
Amos Adeja e Ade ibigbe (2025), Global Jou nal o Economic and Finance Resea ch 02(11): 1258-1269
DOI URL:h ps://doi.o g/10.55677/GJEFR/15-2025-Vol02E11 pg. 1261
Tenu e Di e si y (T_D)
T_D pe ains o he di e ences in he du a ion o ime ha membe s ha e se ed on he boa d. Acco ding o Ne d um (2024), some
membe s may be ela i ely new, b inging esh ideas and pe spec i es, while o he s may ha e se ed o a longe ime, o e ing
con inui y, ins i u ional knowledge, and expe ience. A balance o sho - e m and long- e m boa d membe s can con ibu e o
e ec i e co po a e go e nance by combining inno a ion wi h s abili y (Ne d um, 2024). In he oil and gas sec o , whe e s a egic
decisions equen ly ha e long- e m implica ions, enu e di e si y can help companies adap o changes while main aining a solid
ounda ion.
2.2 Theo e ical Re iew
Se e al heo ies explain he in e play be ween BD and he FP o en i ies; esou ce dependency, agency, and sys ems heo ies a e
pa o he mos p ominen .
2.2.1 Resou ce Dependence Theo y (RDT)
Resou ce dependency heo y was in oduced by Je ey P e e and Ge ald R. Salancik in hei seminal wo k, ‘The ex e nal con ol
o o ganiza ions: A esou ce dependence pe spec i e’, published in 1978 (P e e & Salancik, 2015). Resou ce dependence heo y
(RDT) sugges s ha o ganiza ions a e no sel -su icien and mus in e ac wi h hei ex e nal en i onmen o acqui e c i ical
esou ces needed o su i al and g ow h (John, 2024). Boa ds o di ec o s play a pi o al ole in linking i ms o ex e nal esou ces,
such as expe ise, connec ions, and access o capi al (Danso e al., 2024). A di e se boa d can o e a b oade a ay o pe spec i es,
ne wo ks, and knowledge o O&G companies in Nige ia, helping he o ganiza ion o e come complex egula o y, en i onmen al,
and ope a ional challenges.
Fi ms can e ec i ely educe unce ain y and dependence on ex e nal en i ies, ul ima ely enhancing hei inancial pe o mance by
including indi iduals wi h a ied expe iences and backg ounds (Danso e al., 2024). C i ics a gue ha esou ce dependency heo y
(RDT) o e emphasizes he ole o ex e nal esou ces in shaping o ganiza ional beha iou , o en neglec ing in e nal dynamics and
manage ial agency (Hillman e al., 2009).
The s udy inds RDT especially pe inen because i o e s a amewo k o comp ehending how g ea e di e si y among boa d
membe s can imp o e he FP o O&G companies in Nige ia. Fi ms can access c i ical esou ces o manage s akeholde expec a ions,
comply wi h egula ions, and inno a e in esponse o ma ke demands by inco po a ing di ec o s wi h di e se expe ise, such as
legal, enginee ing, en i onmen al, accoun ing, o inancial backg ounds. Fo ins ance, gende and na ional di e si y can enhance
he i m's epu a ion and os e be e ela ionships wi h local communi ies and in e na ional pa ne s (Danso e al., 2024). Thus,
RDT emphasizes he s a egic impo ance o BD as an a enue o secu e and op imize he esou ces necessa y o inancial success
in a compe i i e and esou ce-in ensi e indus y.
2.2.2 Agency Theo y (AT)
Agency heo y, in oduced by Jensen and Meckling in 1976, ocuses on he ela ionship be ween p incipals (sha eholde s) and
agen s (manage s), emphasizing he po en ial con lic s o in e es ha a ise when agen s p io i ize hei goals o e he p incipals'
in e es s (Jensen & Meckling, 1976). The heo y a gues ha a i m's go e nance s uc u e, including he boa d o di ec o s, is c ucial
o moni o ing managemen and ensu ing alignmen wi h sha eholde objec i es (Tekin, & Pola , 2020). Conce ning O&G i ms
in Nige ia, i is belie ed ha a di e se boa d expands o e sigh by ushe ing in a ious iewpoin s and dec easing he chances o
g oup hink (O umwense & Osa-Izeko, 2023).
This di e si y can s eng hen accoun abili y, imp o e s a egic policymaking, and e en ually esul in be e inancial pe o mance.
C i ics o agency heo y a gue ha i o en o e looks he po en ial o p incipals o exploi agen s, ocusing p edominan ly on agen
misconduc (Lane & Ki is o, 2008).
AT’s ele ance o his s udy lies in i s p o ision o a heo e ical basis o unde s anding how boa d di e si y impac s inancial
pe o mance by enhancing go e nance. A di e se boa d can mi iga e agency p oblems by inco po a ing independen di ec o s who
b ing a ied expe ise and a e less likely o align wi h managemen ’s in e es s (Sie a-Mo án e al., 2024). Fo oil and gas i ms in
Nige ia, whe e go e nance challenges a e common, boa d di e si y may imp o e accoun abili y and anspa ency, os e ing in es o
con idence and be e inancial ou comes (B iano, e al., 2023). Thus, he heo y emphasizes he signi icance o di e si y as a
mechanism o s eng hen o e sigh and align managemen ac ions wi h sha eholde alue.
2.2.3 Sys ems heo y (ST)
ST was ini ially p opounded by Ludwig on Be alan y, a biologis , in he 1940s. Be alan y de eloped he Gene al Sys ems
Theo y (GST) o explain how di e en pa s o a sys em in e ac and unc ion as a whole (Gube man, 2004). The heo y has since
been adap ed and expanded upon in a ious disciplines, including sociology, managemen , and o ganiza ional s udies, o analyze
he in e dependence o componen s wi hin complex sys ems (Sky ne , 2005).
Sys ems heo y is a mul idisciplina y amewo k ha iews o ganiza ions as complex, in e dependen en i ies unc ioning wi hin
b oade en i onmen s. I emphasizes he in e connec ions be ween a ious componen s, sugges ing ha changes in one pa o he
sys em a ec he en i e sys em (Sco & Da is, 2007). Applied o co po a e go e nance, sys ems heo y posi s ha boa d di e si y
in oduces di e se pe spec i es, os e ing be e decision-making, c ea i i y, and adap abili y in dynamic en i onmen s. Fo O&G
i ms, which ope a e in a ola ile and complex in e na ional ma ke , a di e se boa d can p o ide he s a egic insigh needed o
Amos Adeja e Ade ibigbe (2025), Global Jou nal o Economic and Finance Resea ch 02(11): 1258-1269
DOI URL:h ps://doi.o g/10.55677/GJEFR/15-2025-Vol02E11 pg. 1262
na iga e challenges and enhance inancial pe o mance. This holis ic pe spec i e unde sco es he ele ance o sys ems heo y in
examining how di e si y in boa d composi ion impac s o ganiza ional ou comes (Luciano e al., 2020).
C i ics o sys ems heo y a gue ha i s b oad applicabili y makes i less p edic i e and di icul o ope a ionalize in empi ical
esea ch. They con end ha he heo y o en lacks speci ici y in iden i ying causal mechanisms o de ining bounda ies be ween
sys ems and hei en i onmen s (Midgley & Rajagopalan, 2020). In addi ion, skep ics no e ha sys ems heo y may o e emphasize
in e dependence, o e looking indi idual agency o con ex ual ac o s unique o speci ic indus ies. Despi e hese c i icisms, he
heo y's adap abili y and ocus on in e ela edness ha e p o en aluable in s udying go e nance s uc u es and pe o mance
ou comes, as hey align wi h he mul i ace ed na u e o ope a ions (Gube man, 2004).
2.2.4 Theo e ical F amewo k
RDT and AT unde pin his s udy, o e ing essen ial pe spec i es on he link be ween BD and FP in Nige ia's O&G i ms. Acco ding
o RDT, o ganiza ions ely on ex e nal esou ces o h i e, and di e se boa ds se e as key condui s o accessing expe ise,
ne wo ks, and oppo uni ies (P e e & Salancik, 2015). In he con ex o Nige ian oil and gas i ms, a boa d wi h membe s o
di e se gende , na ional, and p o essional backg ounds can help na iga e complex egula o y and ope a ional landscapes, secu e
c i ical esou ces, and imp o e s akeholde ela ionships (Danso e al., 2024). RDT b ings o ligh he s a egic ole o di e si y in
d i ing inancial success by mi iga ing en i onmen al unce ain ies and enhancing decision-making capabili ies.
Agency heo y, on he o he hand, emphasizes he impo ance o go e nance in aligning manage ial ac ions wi h sha eholde
in e es s (Jensen & Meckling, 1976). A di e se boa d can enhance o e sigh and educe agency con lic s by b inging a ied
pe spec i es and independen judgmen o decision-making p ocesses (Sie a-Mo án e al., 2024). This is pa icula ly signi ican in
Nige ian oil and gas i ms, whe e go e nance challenges a e p e alen , and obus moni o ing mechanisms a e essen ial (B iano e
al., 2023). Agency heo y unde sco es how boa d di e si y se es as a ool o mi iga ing isks, imp o ing go e nance, and
enhancing inancial pe o mance in his esou ce-in ensi e sec o by os e ing accoun abili y, anspa ency, and s a egic igo .
2.3 Empi ical Re iew
While empi ical s udies on he link be ween BD and FP show a ied esul s ac oss di e en con ex s, se e al s udies indica e a
posi i e associa ion o di e se boa ds wi h FP. Fo example, gende di e si y, o eign ep esen a ion, and independen di ec o s a e
equen ly associa ed wi h imp o ed pe o mance indica o s such as ROA, ROE, and Tobin’s Q (Gha ios e al., 2024; Hosny &
Elgha bawy, 2022; Pu wi o, 2024; Yunusa e al., 2024). The s udies con end ha boa d delibe a ions a e en iched and go e nance
s eng hened by di e si y.
Howe e , s udies wi h opposing esul s indica e ha in ce ain con ex s, G_D may ha e a de imen al e ec on pe o mance o no
signi ican e ec a all (Almaq a i e al., 2024; Saida e al., 2024), indica ing ha he ad an ages o di e si y a e con ingen on he
o ganiza ional con ex and he ex en o genuine inclusion. These s udies aimed a assessing he impac o a ious ypes o BD, like
G_D, N_D, EP_D, skills, and independence on FP. Resea ch indica es ha independen di ec o s and o eign boa d membe s
consis en ly imp o e co po a e ou comes (Al Ismaili e al., 2024; Pu wi o, 2024), while he in luence o G_D a ies.
In ce ain ins ances, G_D se es as a posi i e mode a o o he ela ionships be ween o he a iables, like capi al s uc u e and FP
(Kandie e al., 2024). Howe e , in o he cases, inc eased G_D is associa ed wi h diminished FP, po en ially due o ac o s such as
okenism o ine ec i e in eg a ion (Almaq a i e al., 2024). Mo eo e , i seems ha la ge boa d sizes ad e sely impac pe o mance,
indica ing he signi icance o an op imal boa d composi ion (Saida e al., 2024).
In gene al, he empi ical e idence e eals ha BD is no uni e sally ad an ageous and is in luenced by ela i e ac o s such as
go e nance s uc u es, indus y cha ac e is ics, and coun ywide en i onmen s. Nume ous academics sugges ha companies
implemen balanced di e si y s a egies, emphasize independen o e sigh , and os e he au hen ic inclusion o women and o eign
di ec o s o ully ealize he po en ial o di e se boa ds (Gha ios e al., 2024; Hosny & Elgha bawy, 2022; Yunusa e al., 2024).
Thus, wi hou a suppo i e go e nance amewo k and meaning ul oles o di e se membe s, BD alone may no au oma ically
esul in highe FP.
3.0 METHODOLOGY
3.1 Resea ch Design
To explo e he link be ween BD and FP in Nige ia's lis ed O&G companies, a panel da a eg ession app oach was u ilized. This
me hod inco po a es bo h c oss-sec ional and ime-se ies aspec s, acili a ing a mo e ho ough examina ion o he a iables' changes
o e ime and hei di e ences among he oil companies being s udied.
3.2 Popula ion and Sample Size
This s udy ocused on he O&G indus y in Nige ia as i s popula ion, wi h a sample made up o six O&G i ms lis ed on he NGX.
3.3 Da a Sou ce
This s udy u ilized da a om he inancial s a emen s o lis ed O&G i ms on he NGX, spanning a pe iod o en yea s (2014 - 2023).
The epo s p o ided ho ough de ails abou di e en ypes o boa d composi ion and he FP o he companies.
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3.4 Me hod o Da a Analysis
The esea ch ca ied ou a p e-analysis es o iden i y he app op ia e es ima ion me hod o e icien coe icien es ima ion o he
independen a iables; a Hausman (HM) es was used o choose be ween andom and ixed e ec s.
3.5 Model Speci ica ion
This s udy’s model speci ica ion was de eloped o align wi h i s objec i es o assessing he e ec o BD ( ep esen ed by G_D, A_D,
N_D, EP_D, and T_D) on FP ( ep esen ed by ROA, ROE, and EPS) in he O&G sec o . The model's implici o m is speci ied as
ollows:
inancial pe o mance = 𝑓(𝑏𝑜𝑎𝑟𝑑 𝑑𝑖𝑣𝑒𝑟𝑠𝑖𝑡𝑦)…………….……………………..…...3.1
Explici ly:
𝑅𝑂𝐴 = 𝑓(𝐺−𝐷, 𝐸−𝐷, 𝐴−𝐷, 𝐸𝑃
−𝐷, 𝑇−𝐷)………………………………………………’...3.2
𝑅𝑂𝐸 = 𝑓(𝐺−𝐷, 𝐸−𝐷, 𝐴−𝐷, 𝐸𝑃
−𝐷, 𝑇−𝐷)……………………………………………....…3.3
𝐸𝑃𝑆 = 𝑓(𝐺−𝐷, 𝐸−𝐷, 𝐴−𝐷, 𝐸𝑃
−𝐷, 𝑇−𝐷)……………………… …………………….…...3.4
Econome ically:
𝑅𝑂𝐴𝑖𝑡 = 𝛽0+ 𝛽1𝐺−𝐷𝑖𝑡 + 𝛽2𝐸−𝐷𝑖𝑡 + 𝛽3𝐴−𝐷𝑖𝑡 + 𝛽4𝐸𝑃
−𝐷𝑖𝑡 + 𝛽5𝑇−𝐷𝑖𝑡 + 𝜇1𝑖𝑡 …….…...3.5
𝑅𝑂𝐸𝑖𝑡 = 𝜃0+ 𝜃1𝐺−𝐷𝑖𝑡 + 𝜃2𝐸−𝐷𝑖𝑡 + 𝜃3𝐴−𝐷𝑖𝑡 + 𝜃4𝐸𝑃
−𝐷𝑖𝑡 + 𝜃5𝑇−𝐷𝑖𝑡 + 𝜇1𝑖𝑡 ……….....3.6
𝐸𝑃𝑆𝑖𝑡 = 𝛿0+ 𝛿1𝐺−𝐷𝑖𝑡 + 𝛿2𝐸−𝐷𝑖𝑡 +𝛿𝛽3𝐴−𝐷𝑖𝑡 + 𝛿4𝐸𝑃
−𝐷𝑖𝑡 + 𝛿5𝑇−𝐷𝑖𝑡 + 𝜇1𝑖𝑡 …………3.7
Whe e;
ROA is e u n on asse s
ROE is e u n on equi y
EPS is ea nings pe sha e
𝛽0, 𝜃0, 𝛿0 a e he in e cep s o he model
𝛽1−5, 𝜃1−5,, 𝛿1−5 a e he coe icien s o he independen a iables o be es ima ed.
i – a e he oil and gas i m
- ime pe iod (2014 o 2023)
𝜇𝑖𝑡 a e he e o e ms o he model.
Table 1: Va iable Measu emen
Va iables
Desc ip ion
Measu emen
G_D (Gende
Di e si y)
The boa d's ep esen a ion o di e en
gende s.
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑒𝑚𝑎𝑙𝑒 𝑑𝑖𝑟𝑒𝑐𝑡𝑜𝑟𝑠
𝑇𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐵𝑜𝑎𝑟𝑑 𝑀𝑒𝑚𝑏𝑒𝑟𝑠
N_D (Na ional
Di e si y)
Boa d membe di e si y is ounded on
na ionali y o coun y o o igin.
The numbe o o eign membe s o he o al boa d
membe s.
A_D (Age Di e si y)
The a ia ion in boa d membe s' ages.
The di e ence be ween he oldes and younges boa d
membe s. A wide ange sugges s g ea e di e si y.
EP_D (Educa ional and
P o essional Di e si y)
The di e si y in boa d membe s’ academic
backg ounds and p o essional expe ience.
The numbe o dis inc educa ional ields and
p o essional backg ounds.
T_D (Tenu e Di e si y)
Di e ence in he leng h o se ice o
boa d membe s wi hin a company.
S anda d De ia ion o Tenu e: Shows he dispe sion o
boa d membe s' leng h o se ice in yea s. A highe
alue indica es g ea e di e si y.
ROA (Re u n on Asse s)
Measu e he e ec i eness o asse use in
gene a ing income o he company.
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
ROE (Re u n on Equi y)
Measu e how he company e icien ly
gene a es p o i om i s sha eholde s'
in es men s.
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦
EPS (Ea nings Pe
Sha e)
Measu es he pa o he en i y's p o i ha
is assigned o one equi y sha e.
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 𝑆ℎ𝑎𝑟𝑒𝑠
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4.0 DATA ANALYSIS AND INTERPRETATION
4.1 Hausman Tes and Panel Reg ession Analysis
Table 2: Resul o Hausman (HM) Tes
Tes Summa y
Chi-Sq. S a is ic
Chi-Sq. d. .
P ob.
Equa ion 3.2
5.532634
5
0.3544
Equa ion 3.3
10.024349
5
0.0445
Equa ion 3.4
5.906233
5
0.3155
Sou ce: Au ho s’ Compu a ion (2025)
Acco ding o he HM es esul s in Table 2, p e e ences o he ixed and andom e ec s models di e depending on he ou comes
o he h ee equa ions. The p- alue o Equa ion 3.2 is 0.3544, which is > 0.05. This indica es accep ance o he null hypo hesis,
which s a es ha he andom e ec s model is app op ia e o Equa ion 3.2.
The p- alue o Equa ion 3.3 is 0.0445, which is less han 0.05. This indica es he ejec ion o he null hypo hesis and accep ance o
he ixed e ec s model. The p- alue o Equa ion 3.4 is 0.3155, which is ˃ 0.05; hus, he null hypo hesis is accep ed, and he
andom e ec s model is mo e sui able o Equa ion 3.4.
Table 3: Resul o Panel Reg ession Analysis (Random E ec ) o Equa ion 3.2
Dependen Va iable: ROA
Va iable
Coe icien
S d. E o
-S a is ic
P ob.
A_D
-0.106343
0.470572
-0.225988
0.8221
N_D
0.192206
0.555139
0.346231
0.7305
EP_D
-0.482174
0.376314
-2.281307
0.0056
G_D
0.249765
0.502487
0.497058
0.6212
T_D
0.413832
0.422102
0.980406
0.3313
C
-0.245056
0.605975
-0.404400
0.6875
R-squa ed
0.044456
Mean dependen a
0.013899
Adjus ed R-squa ed
-0.044020
S.D. dependen a
0.421473
S.E. o eg ession
0.430650
Sum squa ed esid
10.01480
F-s a is ic
0.502464
Du bin-Wa son s a
2.200374
P ob(F-s a is ic)
0.773048
Sou ce: Au ho s’ Compu a ion (2025)
The andom e ec s model is used in he panel eg ession analysis shown in Table 3 o assess how he boa d di e si y measu e
co ela es wi h G_D, A_D, N_D, EP_D, and T_D in ela ion o ROA. The analysis e eals ha A_D has a coe icien o -0.1063,
sugges ing ha a 1 uni ise in A_D would lead o a 0.11 uni dec ease in ROA. This associa ion, howe e , is no s a is ically
signi ican , as shown by he p- alue o 0.8221. Likewise, N_D possesses a posi i e coe icien o 0.1922, indica ing ha a 1 uni
ise in N_D would esul in a 0.19 uni ise in ROA; howe e , he e ec is s a is ically insigni ican as well (p- alue = 0.7305).
A coe icien o -0.4822 wi h a p- alue o 0.056, EP_D shows ha a ise o 1 uni in his a ea would signi ican ly dec ease ROA by
0.48 uni s. Wi h a posi i e coe icien o 0.2498, G_D e eals ha a 1 uni ise in G_D would lead o a ise o 0.25 uni s in ROA;
howe e , his e ec is s a is ically insigni ican (p- alue = 0.6212). The coe icien o T_D is 0.4138, which signi ies ha a 1-uni
ise in T_D would esul in an inc ease o ROA by 0.41 uni s. None heless, his connec ion is s a is ically insigni ican as well (p-
alue = 0.3313).
An R2 alue o 0.0445 indica es ha he independen a iables (A_D, N_D, EP_D, G_D, and T_D) accoun o jus 4.45% o he
a ia ion in ROA. Wi h a alue o 2.2004, he Du bin-Wa son s a is ic poin s o he non-exis ence o no able au oco ela ion in he
esiduals. An F-s a is ic o 0.5025 and a p- alue o 0.7730 show ha he o e all model lacks s a is ical signi icance, implying ha
he di e si y me ics do no ha e a signi ican in luence on ROA when conside ed oge he .
Table 4: Resul o Panel Reg ession Analysis (Random E ec ) o Equa ion 3.3
Dependen Va iable: ROE
Va iable
Coe icien
S d. E o
-S a is ic
P ob.
A_D
-0.656474
2.044696
-0.321062
0.7494
N_D
2.179751
2.412150
0.903655
0.3702
EP_D
-4.183981
1.635133
-2.558802
0.0133
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G_D
-0.175267
2.183369
-0.080274
0.9363
T_D
2.889364
1.834088
1.575368
0.1210
C
-0.102377
2.633039
-0.038882
0.9691
R-squa ed
0.122942
Mean dependen a
0.287996
Adjus ed R-squa ed
0.041733
S.D. dependen a
1.918077
S.E. o eg ession
1.877627
Sum squa ed esid
190.3761
F-s a is ic
5.513894
Du bin-Wa son s a
2.543432
P ob(F-s a is ic)
0.020883
Sou ce: Au ho s’ Compu a ion (2025).
The panel eg ession analysis in Table 4 e alua es he ela ionship be ween BD p oxies (G_D, A_D, N_D, EP_D, and T_D) and
ROE by employing he andom e ec s model. The examina ion e eals ha A_D ela es nega i ely o ROE, p esen ing a coe icien
o -0.6565; howe e , his ela ionship lacks s a is ical signi icance. This sugges s ha a ise in A_D would make ROE all by 0.66
uni s; howe e , his impac is no signi ican , as e lec ed by he p- alue o 0.7494. Likewise, N_D shows a posi i e co ela ion wi h
ROE, indica ed by a coe icien o 2.1798 and a p- alue o 0.3702; howe e , he associa ion is s a is ically insigni ican .
Con e sely, he ela ionship be ween educa ional and p o essional Di e si y (EP_D) and ROE is s a is ically signi ican and
nega i e, cha ac e ized by a coe icien o -4.1840 and a p- alue o 0.0133. The indica ion o his is ha a ise in EP_D co ela es
wi h a all in ROE by 4.18 uni s, implying ha EP_D has a nega i e impac on pe o mance. The impac o G_D on ROE is nega i e,
as indica ed by a coe icien o -0.1753 and a p- alue o 0.9363; howe e , his e ec is no signi ican . T_D shows a posi i e
co ela ion wi h ROE, cha ac e ized by a coe icien o 2.8894. Howe e , his link is insigni ican , as shown by a p- alue o 0.1210,
sugges ing ha T_D does no in luence ROE signi ican ly.
Wi h an R-squa ed alue o 0.1229, i can be in e ed ha he independen a iables (A_D, N_D, EP_D, G_D, and T_D) accoun
o app oxima ely 12.29% o he a ia ion in ROE. Wi h a alue o 2.5434, he Du bin-Wa son s a is ic means no conside able
au oco ela ion in he esiduals. An F-s a is ic o 5.5139 and a p- alue o 0.0209 indica e ha he independen a iables ha e
signi ican ly explained he dependen a iable, sugges ing he model is i and ha he di e si y measu es ha e a signi ican
ela ionship wi h ROE.
Table 5: Resul o Panel Reg ession Analysis (Fixed E ec ) o Equa ion 3.4
Dependen Va iable: EPS
Va iable
Coe icien
S d. E o
-S a is ic
P ob.
A_D
-34.26079
220.0757
-0.155677
0.8769
N_D
39.65101
244.3983
0.162239
0.8718
EP_D
-519.7861
224.0475
-2.319982
0.0246
G_D
40.18050
287.4990
0.139759
0.8894
T_D
470.7030
175.1042
2.688131
0.0098
C
-74.53149
442.6537
-0.168374
0.8670
R-squa ed
0.266604
Mean dependen a
-17.73550
Adjus ed R-squa ed
0.116931
S.D. dependen a
179.1076
S.E. o eg ession
168.3105
Akaike in o c i e ion
13.25364
Sum squa ed esid
1388093.
Schwa z c i e ion
13.63760
Log-likelihood
-386.6092
Hannan-Quinn c i e .
13.40383
F-s a is ic
1.781248
Du bin-Wa son s a
2.707343
P ob(F-s a is ic)
0.089305
Sou ce: Au ho s’ Compu a ion (2025).
The panel eg ession esul s in Table 5 illus a e he associa ion be ween Age Di e si y (A_D), Na ional Di e si y (N_D),
Educa ional and P o essional Di e si y (EP_D), Gende Di e si y (G_D), Tenu e Di e si y (T_D), and EPS o he lis ed O&G
companies. The esul s show ha A_D has a nega i e associa ion wi h EPS, cha ac e ized by a coe icien o -34.2608. Howe e ,
his ela ionship is s a is ically insigni ican , indica ing ha while a 1-uni ise in A_D will co espond o a all o 34.26 uni s in
EPS, his e ec should no be conside ed meaning ul. None heless, he e ec is no subs an ial, as e ealed by he p- alue o 0.8769.
This means ha A_D has an insigni ican in luence on EPS.
Likewise, N_D (na ional Di e si y) e eals a posi i e ela ionship wi h EPS, hough i is s a is ically insigni ican . I s coe icien is
39.6510, sugges ing ha an inc ease o 1 uni in N_D would esul in an inc ease o 39.65 uni s in EPS. None heless, his e ec
Amos Adeja e Ade ibigbe (2025), Global Jou nal o Economic and Finance Resea ch 02(11): 1258-1269
DOI URL:h ps://doi.o g/10.55677/GJEFR/15-2025-Vol02E11 pg. 1266
lacks s a is ical signi icance, as e ealed by he p- alue o 0.8718. This implies ha na ional di e si y does no signi ican ly impac
EPS.
In con as , EP_D demons a es a s a is ically signi ican nega i e link wi h EPS, ha ing a coe icien o -519.7861. This sugges s
ha a ise o 1% in EP_D would esul in a dec ease o EPS by 519.79 uni s, wi h a p- alue o 0.0246, which demons a es he
s a is ical signi icance o he ela ionship. G_D shows a posi i e link wi h EPS, indica ed by a coe icien o 40.1805. This sugges s
ha a ise o 1 uni in G_D would esul in an inc ease o 40.18 uni s in EPS, al hough he ela ionship is s a is ically insigni ican
wi h he p- alue o 0.8894.
In con as , T_D (Tenu e Di e si y) demons a es a posi i e co ela ion wi h EPS ha is s a is ically signi ican , ha ing a coe icien
o 470.7030 and a p- alue o 0.0098. This e eals ha inc easing T_D by 1 uni would esul in a signi ican inc ease o 470.70
uni s in EPS.
An R-squa ed alue o 0.2666 means ha a ound 26.66% o he a ia ion in EPS can be a ibu ed o he independen a iables
(A_D, N_D, EP_D, G_D, and T_D). Wi h a alue o 2.7073, he Du bin-Wa son s a is ic sugges s ha he model's esiduals do no
exhibi signi ican au oco ela ion. Wi h an F-s a is ic o 1.7812 and a p- alue o 0.0893, he o e all model demons a es s a is ical
signi icance a he 10% le el.
4.2 Discussion o Findings
This s udy examined how ac o s ela ed o boa d di e si y a ec he FP o O&G companies lis ed on he NGX, u ilizing panel
eg ession analyses wi h ixed and andom e ec s models om 2014 o 2023. Table 3 shows ha Age di e si y (A_D), na ional
di e si y (N_D), gende di e si y (G_D), and enu e di e si y (T_D) all ha e coe icien s ha a e s a is ically insigni ican , as hei
p- alues exceed 0.05. Ye , he coe icien o educa ional and p o essional di e si y (EP_D) is nega i ely signi ican a he 5% le el.
sugges ing ha companies wi h boa ds comp ising indi iduals om a ied educa ional and p o essional backg ounds expe ience a
lowe ROA. This disco e y is consis en wi h agency heo y, which posi s ha excessi e di e si y can esul in heigh ened agency
cos s s emming om con lic s, misaligned in e es s, and challenges in achie ing consensus on s a egic decisions. The disco e y
conce ning he connec ion be ween G_D and ROA co obo a es he esul s o Saida e al. (2024); Hosny & Elgha bawy (2022),
and Pu wi o (2024) bu is in con as o he esul s o Gha ios e al. (2024) and Masa’deh e al. (2024), which iden i ied a signi ican ly
posi i e co ela ion be ween G_D and ROA; and Al Ismaili e al. (2024) and Hosny & Elgha bawy (2022), which iden i ied a
signi ican nega i e co ela ion be ween G_D and ROA.
In Table 4, he ROE a iable demons a es a s a is ically signi ican in e se co ela ion wi h educa ional and p o essional di e si y
(EP_D), as e ealed by i s coe icien o -4.1839 and p- alue o 0.0133. This indica es ha a ise o 1 uni in EP_D esul s in a
educ ion o ROE by 4.18. This implies ha enhancing he di e si y o educa ion and p o ession among boa d membe s may lead
o a dec ease in ROE, possibly because di e ing s a egic iewpoin s hinde decision-making speed. This disco e y aligns wi h
esou ce dependency heo y (RDT), which posi s ha al hough di e si y can g an i ms access o a wide ange o knowledge and
expe ise, an excess o a ia ion in educa ional and p o essional backg ounds may lead o ine iciencies. Companies in he oil and
gas indus y wo k wi hin a highly specialized and echnical se ing, whe e a uni o mi y o expe ise may p o e mo e ad an ageous
han an o e abundance o di e si y. Meanwhile, A_D, N_D, G_D, and T_D demons a e ela ionships wi h ROE ha lack s a is ical
signi icance. The inding ega ding he connec ion be ween G_D and ROE con adic s ha o Yunusa e al. (2024), which iden i ied
a signi ican posi i e ela ionship be ween he wo. Fu he mo e, he esul conce ning N_D and ROE nega es he inding o Al
Ismaili e al. (2024), which disco e ed a posi i e e ec o N_D on ROE. The inding o his s udy, howe e , suppo s he conclusion
d awn by Al Ismaili e al. (2024) ega ding he nega i e and signi ican ela ionship be ween EP_D and ROE.
As indica ed in Table 5, o EPS, a s a is ically signi ican nega i e ela ionship exis s wi h EP_D, cha ac e ized by a coe icien o
-519.7861 and a p- alue o 0.0246. Excessi e di e si y in educa ional and p o essional backg ounds ad e sely impac s i ms’
ea nings pe o mance, a phenomenon ha can be unde s ood h ough he lens o sys ems heo y. An o ganiza ion ope a es as a
connec ed whole om a sys ems pe spec i e, and i boa d di e si y dis up s cohesion and decision-making e iciency, i may lead
o educed inancial pe o mance. When a company has an excess o di e gen pe spec i es, i may ind aligning co po a e s a egies
challenging; his can esul in diminished sha eholde alue. In con as , enu e di e si y (T_D) shows a no ewo hy posi i e
ela ionship wi h EPS, as e ealed by a coe icien o 470.703 and a p- alue o 0.0098. This means a ise in T_D has a bene icial
impac on EPS. This implies ha he p esence o di ec o s wi h di e ing leng hs o enu e enhances inancial ou comes by p o iding
a blend o seasoned expe ience and inno a i e iewpoin s in decision-making. This disco e y is in acco dance wi h RDT, which
p oposes ha a boa d made up o bo h expe ienced and newe membe s can e ec i ely balance s abili y and inno a ion, esul ing
in imp o ed inancial ou comes. Howe e , A_D, N_D, and G_D demons a e ela ionships wi h EPS ha lack s a is ical
signi icance.
5.0 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
The indings o his s udy show ha boa d di e si y has a mixed impac on he FP o lis ed O&G companies in Nige ia. In pa icula ,
he esul s demons a e ha BD ac o s A_D, N_D, and G_D do no ha e a s a is ically signi ican associa ion wi h ROA, ROE, and
