RELATIONSHIP BETWEEN BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE OF PENSION FUND ADMINISTRATORS IN NIGERIA
Keywords:
Board characteristics, ownership structure, board competence, financial performance, pension fund administratorAbstract
A resurgence of interest in corporate governance has been driven by scandals and
corporate failures across the globe. In Nigeria, while efforts are being made to build a
sound pension system, concerns over the safety of contributors’ funds have cast doubt on
the future of pension fund administrators. This study examined the effect of board
characteristics on the financial performance of pension fund administrators in Nigeria. It
was anchored on stewardship theory, which views board members as responsible
stewards committed to organizational success. The study adopted quantitative research
design. Out of 21 licensed pension fund administrators, 12 were purposively selected
based on data availability. Secondary data covering a five-year period (2019–2023) were
collected from their annual reports. Data were analyzed using Ordinary Least Squares
(OLS) regression via SPSS. The findings showed that board independence, board
competence, and institutional ownership had a positive and significant effect on financial
performance measured by return on assets (ROA). The study recommended increasing
board independence, appointing financially competent members, and retaining
institutional ownership to strengthen governance and improve performance.
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