CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Although efforts are put in place by the Nigerian regulatory authorities with the view to ensuring compliance with the laid that corporate governance principles, in order to curb the menace of corporate failures in deposit money banks in Nigeria. It is in light of the above that this study examined the impact of corporate governance and financial performance of Nigerian Deposit Money Banks. The study used secondary data derived from published financial statement of the listed banks from 2015-2018. Pearson correlation was used to determine the extent of relationship between corporate governance variables and financial performance of banks. Multi-collinearity test was conducted. Regression analysis  was conducted using Stata 12 to analyze the data, and the result of the regression reveals a negative and insignificant effect of Board Size and Firm Size on deposit money bank’s financial performance. The result further reveals a positive and insignificant effect of Board Composition and Audit Committee while Directors’ Equity Holding has a negative and significant effect on the financial performance of Nigerian deposit money banks.