Corporate Governance and Performance of Deposit Money Banks in Nigeria

Abstract

The study examined corporate governance and performance of Deposit Money Banks in Nigeria. Data used for this study were secondary data collected from the audited financial statements of 10 Deposit Money Banks listed on the Nigerian Stock Exchange (NSE) for ten years, spanning from 2008 and 2017. Descriptive analysis conducted in the study includes mean analysis, standard deviation analysis, minimum and maximum analysis. This was followed by correlation analysis, panel estimations including Pooled Ordinary Least Square (OLS), fixed effect and random effect estimation, alongside post estimation tests such as restricted F-test, Hausman test, Wald test of heterogeneity, Wooldridge autocorrelation test and Pesaran test of cross-sectional dependence. Result revealed that board size exerts a negative and significant effect on the performance of Deposit Money Banks in Nigeria to the tune of-0.8462(p=0.009<0.05), board composition exerts a negative and significant effect on return on assets of Deposit Money Banks in Nigeria to the tune of-2.3177(p=0.001<0.05), board audit committee has a positive but insignificant effect on return on assets to the tune of 1.3748(p=0.515>0.05), Chief Executive officer (CEO) duality has a positive but insignificant effect on the performance of on return on assets of Deposit Money Banks in Nigeria to the tune 2.4951(p=0.227>0.05) and that gender diversity exerts a positive but insignificant effect on the performance of Deposit Money Banks in Nigeria to the tune of 5.1647(p=0.685>0.05). It is therefore established that corporate governance exerts a significant effect on the performance of Deposit Money Banks in Nigeria. Jel Code: M14, M42, M21