Corporate Governance Elements and Financial Performance of Nigerias Deposit Money Banks

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Volume 11 - September 2022 (09)

Abstract

This study assesses the effect of corporate governance elements on the financial performance of Nigeria’s deposit money banks listed on the floor of the Nigerian stock exchange for 10 years from 2012 - 2021. The defined population are (10) banks: five from Tier 1 banks - Zenith Bank, Guaranty Trust Bank, First Bank of Nigeria plc, Access Bank and United bank for Africa and five from Tier 2 banks - Sterling Bank, Unity Bank, Wema Bank, Stanbic IBTC and Keystone Bank out of the total population of 19 banks forming the entire universe. The choice of these banks was to strike a balance between the various tiers of the Nigerian banking sector. The finding of this study reveals no significant relationship between board of director composition and financial performance. However, significant positive relationship was observed between gender diversity and financial performance of the studied listed Nigerian Deposit Money Banks. It was finally observed that board size has no significant effect on the financial performance of the sampled Nigerian Deposit Money Banks. It’s therefore recommended that, diversity in gender should be encouraged in Nigerian deposit money banks for effective governance. This study further recommends that board composition should be enhanced to improve performance through adequate board size that will ensure the protection of all stakeholders’ interest. This study also suggests directions for future research.

Keywords

Board composition, board diversity, board size, deposit money banks, Nigeria

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Cite this Article:

Adamu Garba Zango, Corporate Governance Elements and Financial Performance of Nigerias Deposit Money Banks, International Journal of Management Sciences and Business Research 09(2022):18-29 DOI: 10.5281/zenodo.7147905