Impact of corporate governance on financial performance of listed deposit money banks in Nigeria (2008-2023)
Keywords:
Corporate governance, financial performance, banks, Nigeria.Abstract
This study examined the impact of corporate governance on the financial performance of listed deposit money banks in Nigeria. Specifically, it investigated how board size, board composition and audit committee size affect financial performance. Using ex-post-facto reserch design, the study analysed panel data from the annual reports of seven selected banks between 2008 and 2023. The analysis employed descriptive statistics, pearson matrix tests, Variance Inflation Factor (VIF) tests and panel regression models. The Hausman specification test was used to select the most suitable model, and the results favoured the fixed effect repression model. The findings showed that board size, board composition and audit committee size all had a positive and significant impact on the financial perfrmance of banks. This led to the conclusion that the corporate governance elements examined in the study had a significant influence on the performance of deposit money banks in Nigeria. The study recommends the Financial Reporting Council of Nigeria’s committee on corporate governannce should establish a more comprehensive and flexible code of corporate governance. This would improve the performance of deposit money banks in the short-term and the Nigerian economy in the long-term.
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