CORPORATE GOVERNANCE STRUCTURE AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
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Abstract
The study examined the relationship between Corporate Governance structure and financial
performance of deposit money Banks in Nigeria, from 2011 – 2023. The specific objectives of the
study were to investigate the effect of board size, board composition, board independence and audit
quality on financial performance of DMBs in Nigeria. To this end, the study employed an ex-post
facto research design, 10 Banks were sampled out from the listed deposit money banks in the
Nigerian exchange market, and the data gotten was analysed using the Panel Least Squares
method. The findings revealed that there is a significant positive relationship between board size
and financial performance (ROA) of DMBs in Nigeria, the there is no significant relationship
between board composition and financial performance (ROA) of DMBs in Nigeria, that Board
independence has a significant and positive effect on financial performance of DMBs in Nigeria;
and that there is no significant relationship found between audit quality and financial performance
of DMBs in Nigeria. The study concludes that, corporate governance significantly affects financial
performance of deposit money banks, and therefore recommends, among others, that deposit money
banks should increase board sizes, promote board independence and improve board diversity.
performance of deposit money Banks in Nigeria, from 2011 – 2023. The specific objectives of the
study were to investigate the effect of board size, board composition, board independence and audit
quality on financial performance of DMBs in Nigeria. To this end, the study employed an ex-post
facto research design, 10 Banks were sampled out from the listed deposit money banks in the
Nigerian exchange market, and the data gotten was analysed using the Panel Least Squares
method. The findings revealed that there is a significant positive relationship between board size
and financial performance (ROA) of DMBs in Nigeria, the there is no significant relationship
between board composition and financial performance (ROA) of DMBs in Nigeria, that Board
independence has a significant and positive effect on financial performance of DMBs in Nigeria;
and that there is no significant relationship found between audit quality and financial performance
of DMBs in Nigeria. The study concludes that, corporate governance significantly affects financial
performance of deposit money banks, and therefore recommends, among others, that deposit money
banks should increase board sizes, promote board independence and improve board diversity.
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