THE IMPACT OF BOARD SIZE ON SHAREHOLDERS’ WEALTH MAXIMISATION OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

This study examines the impact of board size on shareholders’ wealth maximisation of quoted deposit money banks in Nigeria. The independent variables include board size, while shareholders' wealth maximization is proxied by Economic Value Added (EVA). An ex-post facto research design is employed, utilizing panel data regression analysis on financial statements of fourteen (14) quoted deposit money banks in Nigeria from 2014 to 2023. Secondary data were sourced from annual reports and relevant regulatory bodies, with multiple regression techniques used to test the hypotheses. Findings revealed that board size has an insignificant negative influence on shareholders’ wealth maximization. Therefore, the study recommended that given the negative effect of Board Size on shareholders’ wealth maximization, it is recommended that firms adopt a more streamlined board structure with an optimal number of directors. The focus should be on ensuring that the board is large enough to provide diverse perspectives but not so large as to create inefficiencies.