| Summary, etc |
This study sought to examine the effect of corporate governance on the financial performance of banks in<br/>Nigeria. This study examined the board size, board committee and audit committee size on Return on equity<br/>(ROE) of a sample of five selected banks among the total population of 21 banks in Nigeria. Secondary data<br/>were source from the annual reports and audited financial statement of the selected banks issued for ten (10)<br/>years from the year 2009 – 2018. Linear Regression technique aided by SPSS 20 was employed in evaluating<br/>the relationship between the selected variables. The study found that all measures of corporate governance are<br/>not significant predictors of financial performance of money deposit banks in Nigeria. The overall R value of<br/>the board size, board committee, and audit committee size was 0.232 which show a low positive relationship<br/>of (23.2%) between the return on equity and the independent variables jointly. While the R squared value of<br/>0.054 (5.4%) depict the value of variation in return on equity that can be attributed to the three independent<br/>variables jointly. The F- statistics of 0.868 and the corresponding overall p-value of the three independent<br/>variable of 0.404 were found to be insignificant in explaining the profitability of money deposit banks in<br/>Nigeria. Based on the findings, another study should be conducted to determine the other corporate governance<br/>variables that affect the financial performance of money deposit banks. Financial institutions are the key<br/>engines of growth in many developing economies. The study recommend that there should also be in existence,<br/>a proper internal control structure and self-government regulation so as to detect early rule violations and also<br/>monitor systemic problems for early remediation and solutions. Money deposit banks also must conduct their<br/>activities in such a manner so as not to compromise the financial well-being of all its stakeholders.<br/> |
