Exploring the Relationship between Board Size and Financial Performance in Nepalese Commercial Banks

The purpose of this study is to determine the impact of corporate board size on the firm performance of Nepalese commercial banks. This study examines the banks that have directors less than seven on the board and directors equal to or more than 7 on the board, based on 8 years of data taken from the year 2013 to 2020. The study encompasses a sample of 27 commercial banks for analysis, with data gathered from the annual reports of all 27 operating commercial banks listed on the Nepal Stock Exchange. The performance of the firm is assessed using metrics such as Return on Equity (ROE) and Return on Assets (ROA). The relationship between corporate board size and firm performance was assessed using an Independent Sample t-test. The study's findings indicate that commercial banks with less than seven directors on the board, compared to those with seven or more directors, did not demonstrate a significant impact on firm performance in Nepal.