Corporate Governance and Deposit Money Banks Performance in Nigeria
Author(s)
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Abstract
this study examined the influence of corporate governance on the financial performance of banks in Nigeria. The specific objective of the study is to examine the influence of corporate governance on the financial performance of banks. Bank performance was used as a dependent variable during Board size, Board composition. Gender diversity and Number of audit meetings were used as independent variables; profit after tax was used as a proxy to measure performance. The study adopted the ex-post facto as its research design while the secondary data was used sourcing its data from the annual report of banks for fifteen years (2003-2017). The student t-test, f-test, coefficient of determination and Pearson correlation were the statistical tools used in testing the significance of the variables and the model. The findings revealed that all the independent variables have a significant influence on the dependent variable through the Pearson correlation result revealed that Audit meeting, Board composition, and Gender diversity have a positive relationship while board size has a negative relationship with banks financial performance. The study conclusively agreed that corporate governance have an existing influence of money deposit bank banks performance and therefore we recommend that discretion of rules among the directors should be specified and democratically practiced within the banking rules.
Keywords
Corporate governance, Deposit Money Banks, Performance, Profitability, Diversity
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