Corporate Governance and Performance of Deposit Money Banks in Nigeria

Abstract

This study looks at the relationship between corporate governance and the financial performance of deposit money banks in Nigeria. Ex-post facto resign design was used for the study. The population of this study is all deposit money banks listed on the Nigeria stock exchange as at 31^st December 2019. Using judgmental sampling techniques, 10 listed deposit money banks were selected and their annual reports of 10 years (2009 – 2018) were used to collect needed data. Three (3) hypotheses were formulated and tested using multiple regression approach. The findings of the study revealed that board size has a significant positive impact (β= 0.006; p < 0.05) on financial performance (measured as ROA) of deposit money banks. Also, board independence has a negative significant effect on financial performance (β = -0.010; p < 0.05). While board meeting frequency has no significant influence on financial performance. The study suggests that the CBN policy on board size should be maintained and also recommends that having better level of experience and knowledge in banking and financial matters should be a major consideration in the appointment of non-executive directors.