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Impact of Corporate Governance and Financial Performance of Money Deposit Banks in Nigeria

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  • Omole Ilesanmi Isaac

    (Department of Accountancy, Federal Polytechnic Ile-Oluji Ondo State)

  • Adewole Oyedeji

    (Department of Accounting and Finance, Birmingham City Business School United Kingdom)

Abstract

The Nigerian banking sector’s resilience faces scrutiny following a series of crises, prompting a reevaluation of corporate governance practices. This study investigates the relationship between corporate governance and financial performance of Deposit Money Banks (DMBs) in Nigeria. Utilizing panel regression analysis, the study examines board size, CEO duality, and board independence as governance proxies, with earnings per share (EPS) as a measure of financial performance. Descriptive statistics reveal diverse governance dynamics among DMBs, with regression results indicating a positive (coefficient of 1.027416) but statistically insignificant association between board size and EPS (0.0916 > 0.05). Surprisingly, board independence shows a negative influence on EPS (with the coefficient of -0.261614). The absence of CEO duality aligns with best governance practices revealed a positive influence on financial performance (Coefficient of 2.239216). Overall, the study highlights the significance of tailored governance practices in shaping DMBs’ financial performance, emphasizing the need for meticulous approaches to enhance outcomes.

Suggested Citation

  • Omole Ilesanmi Isaac & Adewole Oyedeji, 2024. "Impact of Corporate Governance and Financial Performance of Money Deposit Banks in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(6), pages 392-401, June.
    • Handle: RePEc:bjc:journl:v:11:y:2024:i:6:p:392-401
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