Effect of Corporate Governance on The Performance of Deposit Money Banks in Nigeria

Abstract

This study investigated the effects of corporate governance on the performance of listed deposit money banks in Nigeria. The study specifically examined the effect of gender diversity, board size, chief executive officer duality and audit committee on performance of listed deposit money banks in Nigeria. Ex-post facto design was employed as the study collected data from published annual financial reports of the fifteen (15) sampled deposit money banks in Nigeria for a period of 13 years covering 2013 to 2024. The data obtained were processed and preliminary tests such as descriptive statistics, normality test, heteroskedasticity test, variance inflation factor and correlational matrix were conducted to ascertain the validity and reliability of the data collected. Multiple regressions were such as Generalised Least Square, Random Effect and Fixed Effects regressions were conducted and husman test was conducted to opt between the random and fixed effect model. The result from the regression result disclosed that gender diversity, board size, CEO duality and audit committee positively and significantly affect the performance of the sampled listed deposit money banks in Nigeria. The study concluded that corporate governance attributes positively and significantly affects the value of deposit money banks in Nigeria. The study made several recommendations amongst others that the composition of board members should be more of Nonexecutive directors as this would enhance board independence and invariably leads to proper monitoring and management discipline. Also, a large board increases the chance of directors having appropriate knowledge, skill and networks. The knowledge, skill and networks of directors may increase the financial performance of an organization.