CORPORATE GOVERNANCE AND DEPOSIT MONEY BANK PERFORMANCE IN NIGERIA

ABSTRACT

The study examines the impact of corporate governance on deposit money banks performance in Nigeria within the period of 2006 to 2021. The study adopted the Panel Two-Stage Least Squares econometric method. The outcome of the study revealed that there is a positive insignificant relationship between audit committee meetings and return on assets of deposit money banks in Nigeria. Similarly, there is a positive insignificant relationship between board meeting and return on assets of deposit money banks in Nigeria. Also, there is a negative significant relationship between board size and return on assets of deposit money banks in Nigeria. Lastly, there is a negative significant relationship between board composition and return on assets of money banks in Nigeria. The study recommends that smaller boards should be used by banks because larger boards may have a negative impact on performance. To improve higher performance, banks should have smaller boards with members who are actively engaged in their responsibilities. The addition of more nonexecutive directors to banks shouldn't be stressed in the new corporate governance code for Nigerian banks in order to prevent underperformance. Alternatively, a sufficient number of executive directors should be taken into consideration. In addition, banks should promote regular audit committee meetings since they improve the correctness of the auditors' report. Finally, deposit money banks should promote board committee meetings as well since they serve to improve the board.