Nexus between corporate governance and financial perfomance in Nigerian liste banks

Kayode Kolawole; Mustapha Abdulkadir; Rukayat Bukola Adejare; Romoke Rafiat Busari; Aliyu Ishola Nafiu

doi:10.26694/2764-1392.7057

Autores

Kayode Kolawole University of Ilorin
Mustapha Abdulkadir Kwara State University
Bukola University of Ilorin Teaching Hospital
Rafiat Department of Accounting, University of Ibadan, Nigeria
Ishola Department of Accounting, University of Texas at El Paso

DOI:

https://doi.org/10.26694/2764-1392.7057

Palavras-chave:

Corporate Governance, Board Characteristics, Performance, Banks

Resumo

In this study we examined the nexus between corporate governance and financial performance in Nigerian listed banks. Secondary data was obtained from the financial statements of selected deposit money banks in Nigeria from 2013 to 2023. Panel fixed effect data analysis was employed to investigate the effect of these corporate governance mechanisms on return on assets in Nigerian banking system. The results of this study revealed that board size, board diversity, board financial expertise, and firm age have significant negative effects on ROA at 5% level of significance. However, board independence, board shareholding, and board nationality do not have significant effects on performance. The study concludes that corporate governance impacts on performance of deposit money banks. Therefore, it was recommended that banks should consider optimizing board size to improve efficiency and decision-making. Large boards may lead to coordination problems, slower decision-making processes, and diluted accountability.

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