CORPORATE GOVERNANCE AND FIRM FINANCIAL PERFORMANCE

ABSTRACT

This study examined the influence of corporate governance (CG) on the financial performance of quoted banks in Nigeria. The study covered thirteen (13) quoted banks listed on the Nigeria exchange (NGX) for the period of five years, 2016 to 2020 out of the banks quoted on the Nigeria exchange. The data were collected through secondary data from the annual financial statements of the banks. Corporate governance was proxied with board size (BS), board composition (BC) and audit committee size (ACS) while financial performance was proxied with return on asset (ROA). The study used descriptive statistics, correlation analysis and regression technique to analyze the data collected.

Findings revealed that board size had a significant positive correlation with ROA, board composition had a significant positive correlation with ROA while audit committee size is positively related but the effect is weak. The study recommends therefore that board size should be large enough and the board composition should comprise more of non executive directors while audit committee should be reviewed occasionally.

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