IMPACT OF ARTIFICIAL INTELLIGENCE AND BOARD CHARACTERISTICS ON EARNINGS PER SHARE OF LISTED NIGERIAN BREWERIES

Abstract

The rapid evolution of technology and corporate governance practices has sparked growing interest in their combined effects on firm performance, particularly in emerging markets. This study explores the impact of Artificial Intelligence (AI) adoption and board characteristics—namely board size, gender diversity, and managerial ownership—on the Earnings per Share (EPS) of listed Nigerian breweries over the period 2014–2023. The research draws on panel data obtained from annual reports and financial statements of the five breweries listed on the Nigerian Exchange Group (NGX), employing a fixed effects regression model to evaluate the relationships among the variables. The results reveal that, while AI adoption, board size, and managerial ownership exhibited statistically insignificant effects on EPS, gender diversity showed a marginally significant negative effect, suggesting transitional governance challenges in leveraging diverse perspectives for financial gains. Collectively, however, the predictors were statistically significant, explaining approximately 24% of the variations in EPS, indicating that board composition and AI MSMER adoption jointly contribute to shareholder value. These findings imply that although AI investments may involve substantial short-term costs and governance restructuring, their long-term potential in enhancing profitability remains strong if strategically aligned with board oversight. The study underscores the need for Nigerian breweries to strengthen board competencies, embrace inclusive governance practices, and integrate AI strategically into operational models. By bridging gaps in existing literature, the research contributes to a nuanced understanding of how governance structures and technological innovations interact to shape financial performance in emerging economies, offering practical insights for managers, policymakers, and investors.