ABSTRACT
This project explores the unresolved questions surrounding the relationship between corporate governance and the performance of deposit money banks in Nigeria. The main aim is to evaluate the impact of corporate governance on the financial performance of these banks.
For data collection, panel data were sourced from the annual reports of ten (13) selected deposit money banks covering the period from 2005 to 2023. The study employed Pearson Correlation and regression analysis, using the Ordinary Least Squares (OLS) technique in E-View 10.0, as part of the data analysis methodology.
The results indicate that board size (BS), directors’ equity holdings (DEH), corporate governance disclosure index (CGDI), board composition (BDC), and audit committee size (ACS) do not significantly influence return on equity (ROE). However, board size (BS) and directors’ equity holdings (DEH) were found to have a significant impact on return on assets (ROA). Additionally, a positive correlation was observed between the independent variables and bank performance, supporting existing literature that suggests a positive link between corporate governance and financial performance.
Based on the findings, the project recommends strengthening governance frameworks to enhance operational efficiency in the banking sector. It further suggests that the Central Bank of Nigeria (CBN) should implement stricter monetary policies to promote transparency, integrity, and prevent insider abuses in customer accounts. Additionally, corporate organizations should prioritize appointing qualified and experienced individuals to their boards. Lastly, the study emphasizes the need for a strong internal control system and strict enforcement of reporting and
disclosure standards to ensure compliance and accountability.
