Corporate Governance and Financial Performance of Listed Deposit Money Banks in Nigeria
Abdulazeez DA*, NdibeL and Mercy AM
Federal University of Technology, Minna, Niger, Nigeria
- *Corresponding Author:
- Abdulazeez DA
Federal University of Technology
Minna, Niger, Nigeria
E-mail: [email protected]
Received Date: December 18, 2015; Accepted Date: January 11, 2016; Published Date: January 30, 2016
Citation:Abdulazeez DA, Ndibe L, Mercy AM (2016) Corporate Governance and Financial Performance of Listed Deposit Money Banks in Nigeria. J Account Mark 5:153. doi:10.4172/2168-9601.1000153
Copyright: © 2016 Abdulazeez DA, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Effective management of organizational resources requires good corporate governance practice particularly in banking industry where there is management/shareholders separation. Since the introduction of corporate governance code after the CBN consolidation exercise in 2005, corporate governance has attracted an unprecedented attention of researchers. However, the sample sizes as well as the number of years covered by previous researches were considered inadequate to generalize findings. It is against this backdrop that the study examined the impact of corporate governance on the financial performance of all listed deposit money banks in Nigeria for a period of seven (7) years (after consolidation). Data for the study were quantitatively retrieved from the annual reports and accounts of the studied banks. Multico linearity test was conducted via Pearson correlation and further confirmed through VIF test. Regression was used to analyze the data and it was found that larger board size contributes positively and significantly to the financial performance of deposit money banks in Nigeria. The study however, recommended among others that banks should increase their board size but within the maximum limit set by the code of corporate governance.