ABSTRACT

This research is centered on effect ofcorporate governance on the financialperformance ofthree listed commercial banks in Nigeria. The research formulated three specific objectives; to determine the effect ofcorporate governance on returns on equityfor the selectedNigerian banks, to examine the effect ofcorporate governance on returns on asset for the selected commercial banks in Nigeria, to and ascertain the effect ofcorporate governance on earningsper share ofthe selected commercial banks. Thus, research questions and research hypotheses were structured in accordance with the.specific objectives. In a bid to achieve a meaningful research study work, this research will review related literatures on the effect of corporate governance on the financial performance which were sub-divided into three subheadings such conceptual framework, theoreticalframework and empirical review. However, in the quest to perfect this research; exfacto research design was adopted were data was sourced secondarily through annual report of three selected banks (First bank, UBA and GT bank) which serves as the instrument. The data sourced covered the range of2008 — 2018. Simple regression statistical technique based on Eview 8 was used to analyze the data collected. Thus, the followingfindings were made based on the analysis that corporate governance has a significant impact on return on equity ofselected commercial banks, that corporate governance has a significant impact on return on asset of selected commercial banks and that corporate governance has a significant impact on return capital employed of selected commercial banks. Sequel to the findings and conclusion, the research made the following recommendations that the determination ofwhat an optimal board size should be is still without unanimity. Nevertheless, this study re-affirms that board size is a significantfactor in the determination offinancial performance. Hence, it is recommended that commercial banks should take into cognizance what an optimal board size should be in formulating code ofcorporate governance that based on the findings it is suggested that banks may need to revisit the issue offrequency of board meetings. Attention should be focused and targeted at efficiency of board meetings rather than frequency and that corporate governance committee of banks should endeavour to carry out a regular appraisal of their corporate governance compliance status as it affectsfinancial performance. This is because the study was able to identify that corporate governance has an impact onfirmperformance