Paradox of Corporate Board Diversity Benefits of Quoted Nigerian Firms: Financial Report Reliability-Timeliness Quality Perspective
Paradox of Corporate Board Diversity Benefits of Quoted Nigerian Firms: Financial Report Reliability-Timeliness Quality Perspective

Summary/Abstract: Board diversity attracts resources for higher corporate performance. But, it can also promote uncertainty that creates diversity paradox often at the expense of investors. This study examines the board diversity timeliness effect and the earnings reliability paradox using evidence from 74 Nigerian quoted firms for the period between 2000 and 2018. The study used secondary data and ex-post research design while data were analyzed with both multiple and multivariate regression tools in a two-stage model. We found that board size, audit, and board leadership diversity positively and significantly affect timeliness. However, the timeliness effect is insignificant for professional diversity (coefficient = 0.0599; p-value > 0.05). Gender diversity yielded negative significant effect on timeliness. In diversity paradox, we found a significant trade-off and diversity paradox between timeliness and reliability as gender diversity, professional diversity and audit diversity of corporate boards increase. However, board size diversity and board leadership diversity move in positive direction thus mitigating the paradox in board diversity. Thus, we recommend that board should be selective in modeling board diversity. Focus should be on board leadership and board size diversity.

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