International Journal of Social Science & Economic Research
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Title:
CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

Authors:
Sanyaolu, O. A.; Adesanmi, A.D.; Imeokparia, L.; Sanyaolu, A. O.; and Alimi, A.


Volume - 2 Issue - 8, Pages - 4131-4146

Abstract:
This study examined the effect of corporate governance on the financial performance of listed deposit money banks in Nigeria from 2007-2016. The study used board size, audit committee, board independence, board gender diversity and Firm size as proxy for corporate governance while financial performance was proxy with return on asset (ROA). The study randomly examined eight (8) deposit money banks listed on the Nigerian stock exchange and obtained data from the annual reports of the banks from 2007-2016. The data extracted were analyzed using pooled least square method of regression. The study found a negative significant relationship between board size, Audit committee, Firm size and return on asset. However, the study found a positive and insignificant relationship between Board Independence and return on asset of the studied banks. The study therefore recommends that board size of companies in Nigeria should not be too many in order not to overwrite its benefits; this implies that the size of the board should be kept at a manageable size for effective and efficient running of the business, as larger board size may lead to ineffective decisions and thereby affect performance negatively. Also, companies should embrace and strengthen their audit committee to ensure efficient financial reporting.

Cite this Article:

[O.A., Sanyaolu, et al. "CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA." International Journal of Social Science and Economic Research, vol. 2, no. 8, 2017, pp. 4131-4146.]

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