Board Members Tenure, Age Disclosures and Organizational Performance: Evidence from Sub-Sahara Africa Countries

Abstract

There is dearth of empirical studies on the relationship between board members tenure, age disclosures and organizational performance of consumer and industrial goods companies in subSaharan Africa in a single study. Thus, this study was carried out to determine whether certain corporate governance disclosure attributes (board members tenure and age) affect organizational performance (return on capital employed). Data were obtained from annual statements of sixteen (16) companies from 2012-2021. Four (4) countries were selected from each region of sub-Saharan Africa, namely Nigeria (West), South Africa (Southern), Kenya (East) and Egypt (Central). Data obtained and computed were analyzed by means of descriptive, post estimation and inferential statistical techniques. The fixed and random regression result showed that board member age (coefficient = 0.1943, z_ value = 1.97 and prob. z = 0.082), and board member tenure (coefficient = -0.1101, z_statistics = -0.14 and prob. z = 0.891) had insignificant relationship with organizational performance among the consumer and industrial goods companies in sub-Saharan Africa. The study recommended a ‘short-tenured board’ which should not be more than nine (9) years. Also, if organizations are to carefully monitor the activities of the board to improve performance, an elongated tenure of board members should be discouraged.