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Humanities and Social Sciences Letters

June 2021, Volume 9, 2, pp 152-161

Board Cultural Diversity and Firm Performance

Osazevbaru, Henry Osahon


Yahaya, Garba Hassan

Osazevbaru, Henry Osahon 1 ,

Yahaya, Garba Hassan 1 
  1. Department of Business Administration, Faculty of the Social Sciences, Delta State University, Abraka, Delta State, Nigeria. 1

Pages: 152-161

DOI: 10.18488/journal.73.2021.92.152.161

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Article History:

Received: 25 November, 2020
Revised: 08 March, 2021
Accepted: 12 April, 2021
Published: 04 May, 2021


The contemporary belief that diversified boards perform better has prompted an investigation of board characteristics and how they influence firm performance. This study examines cultural diversity in boards and the performance of Nigerian firms. Specifically, it investigates the phenomenon of board culture as a “double-edged sword” with the aim of providing new evidence from the perspective of emerging markets. Board cultural diversity viewed the “foreignness” (the degree of a firm’s foreign orientation) of the board and firm, gender diversity, and board independence. Firm performance was measured by return on assets (ROA) and return on equity (ROE). A sample of 23 financial services firms from the Nigerian stock market over the period between 2006 and 2018 was used for the study, which applied a non-linear symmetric GARCH model for the analysis. The results revealed that board culture has a significant negative impact on performance. This result is sensitive to performance measures and is homogeneous to all firms because the control variables for firms’ heterogeneity were statistically insignificant.
Contribution/ Originality
This study advances the existing literature on the influence of cultural diversity within corporate boards on corporate performance using data from a developing economy. It uses a non-linear estimation technique that can accommodate heteroscedasticity in the data to model the dynamics of board culture and performance.


Artifacts, Cultural diversity, Non-linear model, Engaged culture, Board effectiveness, Management diversity.


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This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


Both authors contributed equally to the conception and design of the study.

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