CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE IN NIGERIAN BANKING INDUSTRY

Summary

This study has sought to investigate the impact of corporate governance on performance of banks, using evidence from selected listed banks in Nigeria over the period 2015-2021. Using return on assets (ROA) and return on equity (ROE) as a proxy for performance, regressed on board independence, board size, board diversity and total deposit, and the panel lest squares technique, the following specific findings were made: (i) Board independence is positively and significantly related to performance of banks (ROA) whilst it was negatively and insignificantly related with ROE in Nigeria. (ii) Board size has a positive and significant impact on the performance of banks (ROA and ROE) in Nigeria. (iii) Board diversity is positively related to performance of banks (ROE and ROA) in Nigeria, but the effect is weak. (iv) Total deposit is positively and significantly related to bank performance (ROA) whilst it was insignificantly related with ROE in Nigeria.