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 of
long 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.
UGBOAJA, U (2021). Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria. Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria-7-2
UGOCHI, UGBOAJA. "Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria" Mouau.afribary.org. Mouau.afribary.org, 13 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria-7-2. Accessed 01 Nov. 2024.
UGOCHI, UGBOAJA. "Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria". Mouau.afribary.org, Mouau.afribary.org, 13 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria-7-2 >.
UGOCHI, UGBOAJA. "Effect Of Corporate Governance On Performance Of Deposit Money Banks In Nigeria" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-performance-of-deposit-money-banks-in-nigeria-7-2