Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria

DALPHINE UGOCHI MOUAU/ACC/14/24113 | 95 pages (18327 words) | Projects
Accounting | Co Authors: UGBOAJA

ABSTRACT

The study investigated effect of corporate governance on performance of deposit money banks in Nigeria.  It extracted data from annual reports of 5 selected banks from 2010  to 2016 based on availability of data. The study therefore adopted ex post facto  research design and used board size and board composition  as proxies for corporate governance while net profit margin, return on assets and return on equity were employed  as proxies for performance of banks. The unit root test conducted revealed  that the variables  are  stationary but  integrated with  a combination of ordinary  and  first  difference.  The  study  therefore  used  the  Autoregressive Distributed Lag specifically the Bounds test to  estimate the relationship  of the variables. From the Wald test conducted, the results established that board size and board composition jointly has influence on each of the performance proxies. It was also established that there is significant effect of corporate governance on return on assets and the effect of corporate governance on net profit margin of deposit money banks in Nigeria is significant which confirms the existence of long run relationship between corporate governance and net profit margin of deposit money banks in Nigeria. The study concludes that there is existence oflong run relationship between corporate governance  and  performance  of  deposit  money  banks  in  Nigeria.  It therefore recommends that shareholders of deposit money banks should ensure that  the size of their board should be consistent with the requirements and that the board  composition should include members that have financial expertise .


TABLE  OF CONTENTS

Title page 

Declaration 

Certification 

Dedication 

Acknowledgements 

Table of contents 

List of tables

Abstract


CHAPTER ONE: INTRODUCTION

1.1 Background  to the Study 1

1.2 Statement  of the Problem

1.3 Objectives  of the Study

1.5 Research  Questions

1.4 Statement  of Hypotheses

1.6 Significance  of the Study

1.7 Scope of the Study

1.8 Limitations  of the Study


CHAPTER TWO: REVIEW  OF RELATED LITERATURE

2.1 Conceptual  Framework

2.1.1 Corporate  Governance

2.1.1.1 Board Size

2.1.1.2 Board Composition

2.1.2  Performance                                                                                                      12

2.1.2.1   Return on Asset                                                                                              13

2.1.2.2     Return on Equity                                                                                            13

2.1.2.3   Net Profit Margin                                                                                           14

2.1.3    Corporate  Governance  and Performance                                                      14

2.1.4    Principles  and Pillars  of Corporate  Governance                                          15

2.1.5    Challenges  of Corporate  Governance                                                           21

2.1.6    Merits of Good Corporate  Governance                                                        22

2.2       Theoretical  Framework                                                                                   23

2.2.1     Stakeholder  Theory                                                                                         23

2.2.2     Agency  Theory                                                                                                24

2.3      Empirical Review                                                                                    25

 2.3.1  Summary of Empirical Review                                                               35

2.4     Summary of Literature                                                                             41


CHAPTER THREE: METHODOLOGY

3.1     Research  Design                                                                                              42

3.2      Area of the Study                                                                                     42

3.3     Population of Study                                                                                 42

3.4     Sample Size and Sampling Technique                                                     42

3.5     Method of Data Collection                                                                      43

3.6      Validity and Reliability of Data                                                              43 

3.7 Method  of Data Analysis 43

3.8 Model  Specification   and Functional  Definition  of Variables

3.9 Decision  Rule


CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF RESULTS

4.1       Data Presentation                                                                                     46

4.2      Analysis and Discussion of Descriptive Statistics                                  47

4.3      Analysis and Discussion of Unit Root Results                                        51

4.4     Analysis and Discussion of Results                                                         53

4.4.l   Effect of Corporate Governance on Return on Assets                            53

4.4.2  Effect of Corporate Governance on Return on Equity                            58

4.4.3  Effect of Corporate Governance on Net Profit Margin                           63

4.4     Test of Hypotheses                                                                                  68


CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1     Summary of Findings                                                                              71

5 .2      Conclusion                                                                                               73

5 .3      Recommendations                                                                                    75

REFERENCES 

APPENDIX A 

APPENDIX B 


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APA

DALPHINE, M (2020). Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria

MLA 8th

MOUAU/ACC/14/24113, DALPHINE. "Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria" Mouau.afribary.org. Mouau.afribary.org, 22 Jun. 2020, https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria. Accessed 30 Oct. 2024.

MLA7

MOUAU/ACC/14/24113, DALPHINE. "Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria". Mouau.afribary.org, Mouau.afribary.org, 22 Jun. 2020. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria >.

Chicago

MOUAU/ACC/14/24113, DALPHINE. "Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria" Mouau.afribary.org (2020). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria

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