CORPORATE GOVERNANCE MECHANISM AND THE PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

The study examined the effect of corporate governance mechanism on performance of selected deposit money banks in Nigeria. The study employed ex-post facto research design with the aid of panel date. The study covered a period between 2011-2022. Data was gotten from the annual financial statement of First Bank Nigeria Plc, United Bank for Africa Plc and Zenith Bank Nigeria plc. Various pre and post estimation test was carried to ensure that the data used are stable and to avoid spurious regression result. The study also conducted Hausaman test to determine whether to use either fixed or random effect model to interpret the hypotheses of the study. Based on the Hausaman test the study employed random effect model to test the hypotheses using E-View 10.0 statistical software. The study found that board size has negative(-0.425) and insignificant (0.7400) effect on performance of selected deposit money banks in Nigeria, the study also found that audit committee has positive (4.507) and significant (0.0050) effect on performance of selected deposit money banks in Nigeria. The study concluded that Nigeria's poor corporate governance framework contributed enormously to the financial crisis in the banking sector in Nigeria. The study recommended that Deposit money banks should adopt a small board as this may be better for their profitability, in terms of faster decision making processes where there are fewer members on the board, and also Qualified and professional personal should be among audit committee of the bank so as to be able to provide a fair and balance financial report.

1 19 Jan, 2024

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