Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria (Published)
This study examined the effect of corporate governance on the financial sustainability of deposit money banks in Nigeria, focusing on board size, board composition, and audit committee effectiveness. A descriptive survey research design was adopted, with primary data collected from 153 employees across three purposively selected commercial banks in Abuja, Nigeria. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analyses. Results indicate that board size (β = 0.342, p = 0.001), board composition (β = 0.371, p < 0.001), and audit committee effectiveness (β = 0.388, p < 0.001) all have significant positive effects on financial sustainability. Audit committee effectiveness exhibited the strongest influence on sustainability outcomes. The study concludes that robust corporate governance practices are essential for enhancing the long-term financial sustainability of banks. Recommendations include strengthening board oversight, promoting director independence, and enhancing audit committee effectiveness to ensure accountability and sustainable growth. These findings provide actionable insights for policymakers, regulators, and banking executives seeking to optimize governance and sustain financial performance.
Keywords: Board Composition, Board size, Corporate Governance, Deposit Money Banks, Financial Sustainability, Nigeria, audit committee effectiveness, banking performance
Corporate Governance and Financial Performance of Some Selected Commercial Banks in Nigeria (Published)
This paper investigates the effects of corporate governance mechanisms on selected Nigerian banks’ financial performance from 2018 to 2024, focusing on the impact of board structure, audit committee effectiveness, risk management practices, and governance disclosure on profitability, asset quality, and credit risk management. A mixed-methods research design is adopted for this study, complementing quantitative analysis of financial statements and governance reports with insights from regulatory filings and corporate disclosures. Results show that all governance mechanisms are significant, yet distinct, drivers of financial performance, with risk management practices emerging as the most crucial determinant. Boards with diverse expertise, combined with active audit committees, robust risk frameworks, and transparent reporting by firms, go hand in hand with profitability and reduction of non-performing loans. Based on these findings, this study supports theoretical hypotheses within Agency, Stakeholder, Resource-Dependence Theories while extending the previous literature on the role of board diversity, qualitative audit committee engagement, and disclosure as a source of strategic value. This suggests an integrated approach to governance as an important lesson in teasing out how to prosper in Nigeria’s sometimes hostile banking environment, providing lessons that will be useful in practice for bank management seeking to build stronger institutional performance and resilience, regulators, and other policy actors.
Keywords: Bank Profitability, Board Structure, Corporate Governance, Financial Performance, Nigerian Banks, Risk Management, audit committee effectiveness, governance disclosure