CORPORATE GOVERNANCE MECHANISMS AND FINANCIAL PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

ABSTRACT

This study examined the effect of corporate on the financial performance of quoted deposit money banks in Nigeria. The population of the study consists of 24 quoted deposit money banks on the Nigeria exchange group (NGX) and a sample size of 10 quoted deposit money banks were selected using a simple random technique. The study adopted ex post facto research design and employed a secondary data. Data were analyzed using the descriptive statistics, correlation analysis and ordinary least square regression analysis using Eviews 9(2023) statistical tool. Corporate governance was proxied by board size, gender diversity and board independence while financial performance was measured using return on asset (ROA). Bank size was used as a control variable. The findings revealed that board size had a negative and insignificant effect on financial performance of quoted deposit money banks. Gender diversity and board independence had a positive and significant effect on financial performance on quoted deposit money banks. The study recommended that the management of deposit money banks  should dwell more  on increasing the effectiveness and efficiency of the board rather than the size and width of the board, the management of quoted deposit money banks should appoint more female members into the board of directors and more non executive directors should be appointed into the board of quoted deposit money banks in order to ensure the independence of the board.