CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

ABSTRACT

This study explores the relationship between corporate governance practices and the financial performance of Deposit Money Banks in Nigeria. The financial sector plays a pivotal role in a nation's economic stability and understanding how corporate governance influences bank performance is of paramount importance. The general objective of the research is to analyze the relationship between corporate governance features on the financial performance of selected Deposit Money Banks in Nigeria. The specific objectives are to determine the effect of board meetings on the earnings per share of selected Deposit Money Banks in Nigeria, to ascertain the influence of board size on the earning per share of selected Deposit Money Banks in Nigeria, to examine the effect of board diversity on the earning per share of selected Deposit Money Banks in Nigeria and to assess the impact of board independence on the earnings per share of selected Deposit Money Banks in Nigeria. / The study employs a comprehensive analysis of corporate governance features, including board meetings, board size, board independence and gender diversity, and their impact on Earnings per share within the selected banks. Data for this research is gathered from audited annual financial statement of selected Deposit Money Banks which include First Bank of Nigeria Holdings Plc, United Bank of Africa Plc, Guarantee Trust Holding Bank, Access Bank Plc, and Zenith Bank Plc. The study covered a period of 10 years from 2014 to 2023. The study used descriptive analysis, correlation analysis, regression analysis, and diagnostic tests. The findings of this study shows that there is a positive significant relationship between board meetings and Earnings Per Share (EPS), and gender diversity on boards exhibited a significant positive relationship with EPS. This study recommends that banks should ensure that a significant portion of the board members are independent and consider holding more frequent board meetings to improve oversight and decision making process.