European Journal of Accounting, Finance and Investment

Corporate Governance And Financial Performance Of Listed Deposit Money Banks In Nigeria

Ogaluzor, Odinakachukwu Ifeanyichukwu

Rivers State University

Wali, Mitchelle Ogechi

River State University

Keywords: Corporate governance, financial performance, board size, board independence, return on assets, return on equity

---

Abstract

This paper is on corporate governance and financial performance of listed Deposit Money banks in Nigeria; using the stewardship theory and adopted ex post facto research design. Ten DMBs were selected from the population for study for a period of six (6) years (2015-2020) using the convenience sampling technique. The data used were sourced from the financial reports of the banks and the descriptive statistics, correlation and regression techniques were used for analysis. The test of hypotheses showed a negative insignificant relationship between corporate governance dimensions and ROA. The test also revealed a positive significant relationship between corporate governance proxies and ROE. The study therefore concludes thus: good corporate governance contributes greatly to the equity position of banks. Recommendations made are: 1. Banks should not assemble large board sizes, since they impact negatively on ROA; 2. They should keep a moderate and not large board size since an increase in their board sizes reduced their ROE as well; 3.Banks on the other hand should make their board to be independent with persons from diverse fields. 4. They must also ensure that they increase independent directors in the banks.