Financial performance of Nigerian deposit money banks and corporate governance

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Corporate governance has become a significant policy issue in Nigeria, especially with many developments such as the volatility of corporations on the Nigerian Exchange and the rise in the population of stockholders, which have increased the relevance of corporate governance measures. This study examined the nexus between corporate governance and Nigerian Deposit Money Banks’ (NDMBs) financial performances using a period from 2012 to 2019. Using a judgmental sampling technique, out of 25 NDMRs, 15 NDMRs were selected as a sample size. Secondary data were extracted from the annual reports of the selected banks. Descriptive research design and regression analysis were used to analyze the data. The findings offer empirical evidence to refute the five null hypotheses and found that the financial performance of NDMBs as measured by Tobin Q and corporate governance proxies (i.e. board meetings, the board size, CEO duality, audit committee independence, and board independence) is statistically related. This study found that the nexus between Nigerian deposit money banks’ financial performance and CEO duality is negative and significant. The nexus between Nigerian deposit money banks’ financial performance and board independence is negative and significant. Nigerian deposit money banks’ financial performance and audit committee independence have a positive and significant nexus. The nexus between Nigerian deposit money banks’ financial performance and board size is positive and significant. The nexus between Nigerian deposit money banks’ performance and board meetings is positive and significant. This study concluded that corporate governance and financial performance of NDMBs are related.

Acknowledgment
Whichever contributors to this publication, both non-researchers and scholars, are much acknowledged.

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    • Table 1. Descriptive statistics
    • Table 2. Regression analysis
    • Conceptualization
      Adegbola Olubukola Otekunrin, Mishelle Doorasamy, Olateju Dolapo Aregbesola, Sunday Omojola
    • Data curation
      Adegbola Olubukola Otekunrin, Mishelle Doorasamy, Olateju Dolapo Aregbesola, Sunday Omojola
    • Formal Analysis
      Adegbola Olubukola Otekunrin, Mishelle Doorasamy, Olateju Dolapo Aregbesola, Sunday Omojola
    • Funding acquisition
      Adegbola Olubukola Otekunrin, Mishelle Doorasamy, Olatunde Wright, Olateju Dolapo Aregbesola, Sunday Omojola
    • Project administration
      Adegbola Olubukola Otekunrin, Mishelle Doorasamy, Olateju Dolapo Aregbesola, Sunday Omojola
    • Supervision
      Adegbola Olubukola Otekunrin
    • Validation
      Adegbola Olubukola Otekunrin, Olateju Dolapo Aregbesola, Sunday Omojola
    • Visualization
      Adegbola Olubukola Otekunrin, Mishelle Doorasamy, Olateju Dolapo Aregbesola
    • Writing – review & editing
      Adegbola Olubukola Otekunrin, Mishelle Doorasamy, Olatunde Wright, Olateju Dolapo Aregbesola, Sunday Omojola
    • Methodology
      Mishelle Doorasamy, Olatunde Wright, Sunday Omojola
    • Resources
      Mishelle Doorasamy, Olatunde Wright, Sunday Omojola
    • Investigation
      Olateju Dolapo Aregbesola, Sunday Omojola
    • Software
      Olateju Dolapo Aregbesola, Sunday Omojola
    • Writing – original draft
      Sunday Omojola