THE IMPACT OF CORPORATE GOVERNANCE ON BANK PERFORMANCE IN NIGERIA FOR TEN YEARS PERIOD
Keywords:
Impart, corporate governance, Bank performance, NigeriaAbstract
The study examined the influence of corporate governance on bank financial performance of banks in Nigeria over a period of 2010 to 2019 (10 years). The study employed secondary data using descriptive statistics, correlation matrix and diagnostic test. The study revealed that board size, board independence and firm size have insignificant relationship with bank financial performance in Nigeria. In line with the findings we recommend that the board size should not exceed the maximum since large board size does not mean more effectiveness. Again, board should ensure that corporate governance mechanism is adhered to by all employees in order to create shareholders wealth and not at the detriment of other stakeholders. Finally, the result indicating increase in total asset revealed that it does not increase financial performance, what increases performance is good relationship with all stakeholders; hence bank employees should ensure good working relationship with all stakeholders.
References
Aisyah, S., Musa, C. I., &Ramli, A. (2017). Effect of characteristics and entrepreneurial orientation towards entrepreneurialship competence and crafts and arts small and medium enterprises business performance in Makassar. International Review of Management and Marketing,7(2), 166 – 173.
Alalade, S. A. Y., Oguntodu, J. A., &Adelaku, V. A. (2015). Firms capital structure and profitability performance: A study of selected food product companies in Nigeria. IIARD International Journal of Banking and Finance Research, 1(8), 2015
Antony, J. P., & Bhattacharyya, S. (2010). Measuring organizational performance and organizational excellence of SMEs – part 2: an empirical study on SMEs in India. Measuring Business Excellence, 14(3), 42-52.
Arora, A., &Bodhanwala, S. (2018). Relationship between corporate governance index and firm performance: Indian evidence. Glob Bus Rev, 19(3), 675–689.
Ashraf, M., Bashir, A., &Asghar, N. (2017) Impact of corporate governance on firms’ financial performance: textile sector of Pakistan. International Journal of Business and Management Invention, 6(5):13–19.
Bayoud N.S, Kavanagh, M., Slaughter G. (2012) Corporate social responsibility disclosure and corporate reputation in developing countries: The case of Libya. Journal of Business and Policy Research 7(1):131–160.
Bebeji, A., Mohammed, A., &Tanko, M. (2015) The effect of board size and composition on the financial performance of banks in Nigeria. African Journal of Business Management, 9(16): 590-598.
Black, B.S. (2002) The non-correlation between board Independence and long-term firm performance. Journal of Corporation Law 27, 231–274
Enekwe, C. (2015). The relationship between financial ratio analysis and corporate profitability: Study of selected quoted oil and gas companies in Nigeria. European Journal of Accounting, Auditing and Finance Research, 3(2), 17-34.
Erhardt, N., Werbel, J., &Shrader, C. (2003). Board of director diversity and firm financial performance. Corporate Governance, 11(2), 102 -111.
Eyigege, A. I. (2018). Influence of firm size on financial performance of deposit money banks quoted on the Nigeria stock exchange. International Journal of Economics and Financial Research, 4(9), 297-302.
Frooman, J. (1997). Socially irresponsible and illegal behavior and shareholder wealth: A meta- analysis of event. Studies, Business and Society Journal, 36, 221- 249.
Ilaboya, O. J., &Obaretin, O. (2015). Board characteristics and firm performance: evidence from Nigeria quoted company. Academic Journal of Interdisciplinary Studies, 4(1), 283-290.
Isik, O. &Ince, A.R. (2016). Board size, board composition and performance: An investigation on Turkish banks. International Business Research, 9(2), 74-84.
Jizi, M.I., Salami, A., Dixon, R., &Stratling, R. (2014) Corporate governance and corporate social responsibility disclosure: Evidence from the US banking sector. Journal of Business Ethics, 125(4), 601-615
Khan A, Muttakin M.B, Siddiqui, J. (2013) Corporate governance and corporate social responsibility disclosures: evidence from an emerging economy. J Bus Ethics 114(2), 207–223
Kogan, N., & Wallach, M. (1966).Modification of judgmental style through group interaction. Journal of Personality and Social Psychology, 4(2), 165-174.
Lipton, M. &Lorsch, J. W. (1992): A modest proposal for improved corporate governance. Business Law Review, 48, 59–77.
Mohamed, A. B. M. (2015). Determinants of bank liquidity: Case of Tunisia. International Journal of Economics and Finance, 1(5), 249- 259.
Mokhtaran, M., &Komeilian, B. (2016). Exploring the effect of customer orientation on Dana insurance performance considering the intermediary role of customers relations and service quality management.Faculty of Business Economics and Entrepreneurship, 3, 51-61.
Mulyadi, M.S, &Anwar, Y. (2012) Impact of corporate social responsibility toward firm value and profitability. The Business Review, Cambridge, 19(2), 316–322
Ngumo, K., Collins, K. W. & David, S. H. (2017). Determinants of financial performance of microfinance banks in Kenya. Research Journal of Finance and Accounting, 8(16), 1-8.
Odusanya, I.A., Olumuyiwa, G.Y & Bamidele, M.I. (2018) Determinant of firm profitability in Nigeria: Evidence from dynamic panel models. Journal of Economics and Business, Vol.68, issue 1, pp.43-58
Okoye, L.U, Evbuomwan, G.O., Achugamonu, B.U, &Araghan, I. (2016) Impact of corporate governance on the profitability of the Nigerian banking sector. ESUT Journal of Accountancy, 7(1), 281–292
Okoye, I.U., Erin, O.A., Ahmed, A. &Areghan, I. (2017) Corporategovernace and financial sustainability of microfinance institution in Nigeria. Proceedings of the 29th International Business Information Management Association (IBIMA) Conference (pp.4035-4045), Vienna, Austria.
Okoye, L., Olokoyo, F., Okoh, J., Ezeji, F., &Uzohue, R. (2020). Effect of corporate governance on the financial performance of commercial banks in Nigeria. Banks of Bank System, 15(3), 55-69.
Puni, A., Osei, B. A., &Ofei, S. B. (2014).The effect of board composition on corporate financial performance: Evidence from listed firms in Ghana. International Journal of Business Management, 9(8), 170-178.
Uwuigbe, O. R. (2011) Corporate Governance and Financial Performance of Banks: A Study of Listed Banks in Nigeria. A Doctoral Thesis Submitted to the School of Postgraduate Studies, Covenant University, Ota, Ogun State
Yameen, M., Farhan, N.H., Tasah, M.I. (2019).The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian town and sector. Journal of International Studies, 12(1), 208-220.
