Corporate Governance Practices and the Performance of Selected PostConsolidated Nigerian Deposit Money Banks
Journal Title: Journal of Economics, Finance and Management Studies - Year 2020, Vol 3, Issue 11
Abstract
The nature of the relationship between Corporate Governance (CG) practices and performance of Nigerian Deposit Money Banks (NDMBs) have yet to be clearly established in the extant literature regardless of the volume of studies. This study therefore examined the relationship between CG practices and the performance of post-consolidated NDMBs. The study adopted a panel research design. Secondary data sourced from annual reports and accounts of sampled NDMBs covering a period of ten (10) years (2010-2019) formed the only source of data for this study. The study population consisted of twenty-two listed NDMBs from where a sample of fourteen was randomly selected.CG proxied by Board Size (BS), CEO duality (CEOdu) and Performance proxied by Return on Equity (ROE) and Return on Asset (ROA) were analyzed using Panel regression The result revealed significant positive relationship between BS (ROE; β = 0.1509, at ρ = 0.0051,), CEOdu (ROE; β = 1.4656, at ρ = 0.0242, ROA; β = 0.6079, at ρ = 0.0060), respectively. The result further revealed negative but insignificant relationship between CG and performance (ROI; β = -0.0127, at ρ = 0.07971, ROA; β = -0.0043, at ρ = 0.7891). The study concluded that there is a correlation between CG variables and performance of NDMBs. The study therefore recommended that NDMBs should ensure that they are not only seen to maintain a clear cut separation of the roles of board Chairman and CEO as a matter of principle but should actually enforce it. In addition to this, they should not deviate from the present adherence to the provisions of the corporate governance practices as it relates to audit committee composition.
Authors and Affiliations
Obafemi Tunde Olutokunbo Shuaib Abdulbakar Adeade Olaiya Abiola Lawal
Keywords
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- EP ID EP691396
- DOI 10.47191/jefms/v3-i11-05
- Views 254
- Downloads 0
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