Impact of Corporate Governance on the Financial Performance of Deposit Money Banks in Nigeria (Published)
The study evaluated the impact of corporate governance on the financial performance of Deposit Money banks in Nigeria. The study was guided by four research questions and four research hypotheses. Also, the study covered corporate governance such as board size, financial reporting quality, board independence, and pay performance sensitivity as well as return on asset (ROA) as metrics for profitability of the commercial banks. In addition, an ex-post-facto research design was employed to carry out this investigation, with annual report of the banks used as secondary data for the study. The study’s population included all commercial banks in Nigeria. The study’s sample included thirteen (13) deposit money banks in Nigeria listed in the Nigerian Exchange Group and annual report were collected from 2014 to 2023. The unit root test and descriptive statistics were used to analyse the data collected, while the stated hypotheses were evaluated using linear regression statistical methods. Following the analysis, the following findings were obtained: Board size had significant influence on the Return of Assets of Deposit Money banks in Nigeria. Also, there was significant impact of financial reporting quality on the Return of Assets of Deposit Money banks in Nigeria. Furthermore, board independence had significant influence on the Return of Assets of Deposit Money banks in Nigeria. In addition, pay performance sensitivity had significant influence on the Return of Assets of Deposit Money banks in Nigeria. The study concluded that corporate governance structures play a critical role in determining the financial performance of Nigerian DMBs. The findings contribute to the growing body of literature emphasizing that effective governance not only enhances accountability and transparency but also serves as a catalyst for improved financial outcomes. As such, regulatory authorities, bank management, and policymakers must continuously strengthen governance frameworks to promote financial stability and investor confidence within the banking sector.
Keywords: Board independence, Board size, Corporate Governance, Financial Performance, return on assets (ROA)
Corporate Board Attributes and Financial Performance of Quoted ICT Companies in Nigeria (Published)
Financial performance variations experienced by ICT companies in Nigeria have been linked to corporate governance inefficiencies due to the failure to harness board attributes towards the maximization of asset efficiency and profitability. Although the information and communication technology sector is critical to economic development in Nigeria, literature on how corporate board attributes can help improve the financial performance of companies operating in this environment is scarce. This paper, therefore, evaluates the effect of corporate board attributes on the financial performance of quoted ICT companies in Nigeria. Specifically, this study evaluates the impact of board independence, board gender diversity, and board size on financial performance represented by return on assets. A quantitative research design based on the ex-post facto method is adopted, with the target population being all the ten ICT companies operating in Nigeria and listed on the NGX through census technique. Data are obtained from annual reports and corporate governance reports of sampled firms spanning eight years from 2017 to 2024. Panel data analysis is carried out using a fixed-effect regression model which was selected through the Hausman specification test. Data analyses are conducted using Stata software, version 17, with hypothesis testing done at 5 per cent probability level. Empirical results show that board independence has a negative but statistically significant effect on return on assets (p= 0.0015), implying that too much board independence incurs the cost of monitoring and induces decision lags resulting in poor utilization of assets. Board gender diversity has a positive, albeit, statistically insignificant effect on return on assets (p=0.4231), showing that current levels of board gender diversity may be too low to impact financial performance significantly. Board size has a statistically significant positive effect on return on assets (p=0.0489) meaning that moderate-sized boards allow for better access to expertise and other resources that boost financial performance. The control variable, firm size has a statistically significant positive effect on return on assets (p=0.0173). In conclusion, the study reveals that corporate board attributes play an influential role in determining financial performance in Nigeria. The implications of these findings are discussed and recommendations proposed.
Keywords: Board independence, Board size, Financial Performance, board gender diversity, corporate board attributes
Corporate Governance Mechanisms and Financial Performance of Listed Insurance Firms in Nigeria (Published)
This study examines the effect of corporate governance mechanisms on the financial performance of listed insurance firms in Nigeria. Focusing on board size, board independence, board gender diversity, and audit committee independence, the study uses audited financial statements from all 17 listed insurance companies with complete data from 2020 to 2024. Employing an ex-post facto research design and panel data analysis, the study applies descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression to assess the relationships between governance characteristics and Return on Assets (ROA). The findings reveal that board gender diversity and audit committee independence significantly enhance ROA, while board size and board independence do not have a statistically significant effect. The study highlights the importance of board composition quality, particularly gender diversity and independent audit oversight, in promoting firm performance. These results provide practical insights for regulators, investors, and corporate boards in optimizing governance structures for sustainable growth.
Keywords: Board independence, Board size, Corporate Governance, Financial Performance, audit committee independence, board gender diversity
Corporate Governance Characteristics and Firm Value of Deposit Money Banks in Nigeria (Published)
The degree of corporate and market procedures, lack transparency, distortions and poor corporate practices which results in corporate failures and abysmal corporate financial performance negatively influence corporate objectives. Hence, this study investigated the effects of corporate governance mechanism on the value of deposit money banks in Nigeria. The study population consisted of all deposit money banks and Taro Yamene method of sample size determination was applied. The secondary data for the study was from the published financial statements of sampled banks for the period after validity and reliability test of data. The data obtained was tested using univariate, bivariate and multivariate analysis. The result from the multiple regression result disclosed that board independence, board size, ownership structure, gender diversity and board meeting positively and significantly influences the value of deposit money banks in Nigeria. The study concluded that corporate governance attributes positively and significantly affects the value of deposit money banks in Nigeria. The study made several recommendations amongst others that board sizes should be enhanced as this allows for the appropriate combination of directors. A large board increases the chance of directors having appropriate knowledge, skill and networks. The knowledge, skill and networks of directors may increase the financial performance of an organization. Also deposit money banks in Nigeria should have non-executive directors who act as professional advisers to ensure that competition among insiders encourages measures consistent with maximization of shareholder value.
Keywords: Board independence, Board size, Firm Value, Gender diversity
CORPORATE GOVERNANCE AND AUDIT DELAY IN NIGERIAN QUOTED COMPANIES (Published)
The objective of this study is to examine the determinants of audit report timeliness in Nigeria. Specifically, the study examines the effect of company size, profitability, complexity and audit firm type on audit report timeliness. The cross-sectional research design was adopted with an extensive reliance on secondary data. The data was source from annual reports of manufacturing companies quoted on the floor of the Nigerian stock exchange for 2010-2012. The ordinary least squares (OLS) regression technique was utilized as the method of data analysis. The finding of the study shows the following; (i) A significant relationship exist between board size and Audit report lag (ii) A significant relationship exists between board independence and Audit report lag (iii) A non-significant relationship exists between audit firm type and Audit report lag. It was also discovered that the time lag prescribed by the regulatory bodies are usually too much thus encouraging companies to engage in the act of delaying their financial statements. The recommendation is that in achieving the objective of making the financial statements readily available for making timely decisions, the Nigerian stock exchange, securities and exchange commission, the Financial Reporting council, the Central Bank of Nigeria and other regulatory bodies should put in place measures to ensure strict compliance with the laid down rules and regulations.
Keywords: Audit Report lag, Board independence, Board size