THE IMPACT OF CORPORATE GOVERNANCE VARIABLES ON NON-PERFORMING LOANS OF NIGERIAN DEPOSIT MONEY BANKS
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 11
Abstract
The objective of the study was to examine the impact of Corporate Governance variables of Board size(BS), Board Composition(BC), Composition of Audit Committee(CAC) and power separation(PS) on Non-performing Loans of Nigerian Deposit Money Banks; with a view to finding out whether there is significant impact or not. The researcher used secondary sources of data. The study examined the corporate governance variables amongst fourteen (14) quoted banks on Nigerian Stock Exchange from 2005-2011 using multivariate regression analysis. The findings showed that corporate governance variables of Board size, Board Composition, composition of audit committee and power separation have no significant impact on non-performing loans of Nigerian Deposit Money Banks. The study concluded that board size, board composition, composition of audit committee and power separation is not the reasons for the rising figure of non-performing loans of Nigerian Deposit Money Banks. Therefore, it is recommended that emphasis should be shifted from these explanatory variables (BS, BC, CAC and PS) to other corporate governance issues, such as insider abuse, transparency and accountability and so on, for further investigation.
Authors and Affiliations
Paul Aondona Angahar| Department of Accounting, Benue State University, Makurdi, Nigeria, Simon Kolawole Mejabi| Department of Accounting, Kaduna Polytechnic, Kaduna, Nigeria
Keywords
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