ABSTRACT
The purpose of this study is to determine the relationship between corporate governance and performance of LAPO micro finance bank in Nigeria. It was sought to determine how corporate governance attributes such as board diversity, disclosure and transparency, board composition, credit risk assessment, and capital adequacy influence the performance of LAPO micro finance bank.
This study adopted a survey research instrument through the administration of questionnaires to one hundred and forty-four (144) staff of LAPO micro finance bank in Egor and Oredo LGAs of Edo State. The data were analysed using descriptive statistics, Cronbach Alpha test, Pearson correlation analysis, and robust least square regression technique.
Results showed that board diversity exerts a negative and insignificant influence on performance of LAPO micro finance bank; disclosure and transparency exert a positive and significant effect on performance of LAPO micro finance bank; board composition exert a positive and insignificant effect on performance of LAPO microfinance bank; credit risk assessment has a negative and insignificant effect on performance of LAPO micro finance bank and capital adequacy exert a positive and significant effect on performance of LAPO micro finance bank
It is recommended that investors and shareholders should ensure that management maintains the level of capital adequacy ratio and sustaining the performance of the organisation. And that further empirical work should be conducted in the area of corporate governance and organizational performance of microfinance bank by incorporating other corporate governance variables that might contribute to organisational performance
