CORPORATE GOVERNANCE MECHANISMS AND SHAREHOLDERS WEALTH CREATION IN QOTED NIGERIAN BANKS

  ABSTRACT

This study was conducted to evaluate the effect of corporate governance mechanisms on shareholder wealth creation in quoted deposit money banks. Specifically, this study sought to access the effect of board size, board independence and foreign directors on shareholder wealth creation in quoted deposit money banks in Nigeria. The data of thirteen (13) deposit money banks quoted in the Nigeria Exchange Group ranging from 2013 to 2022 was used during the course of this study. The OLS regression analytical tool was used to analyze the data. The results showed  that, board size has a positive and insignificant relationship with shareholder wealth creation in quoted deposit money banks in Nigeria, Also results showed that, board independence has a positive and significant relationship with shareholder wealth creation in  quoted deposit money banks in Nigeria, in addition, results indicated that  foreign directors  has a negative  and significant relationship with shareholder wealth creation in quoted deposit money banks in Nigeria. It was concluded that board size has an insignificant relationship with shareholder wealth creation and board independence and foreign directors has a significant relationship with shareholder wealth creation. The study recommends that that the management of quoted deposit money banks should work on increasing the technical knowhow of the board. Also, the shareholders should implement policies that will prevent the management from interfering with the activities of the board of quoted deposit money banks. Lastly, top management of quoted deposit money banks should appoint foreign directors with the appropriate and managerial skills to the board in order to enhance shareholder wealth creation.