IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF LISTED BANKS IN NIGERIA





margin-left:203.0pt;margin-bottom:.0001pt;line-height:normal;mso-pagination:




none;mso-layout-grid-align:none;text-autospace:none">



12.0pt;font-family:" times="" new="" roman","serif";mso-bidi-font-style:italic"="">ABSTRACT





16.45pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none"> 




justify;line-height:150%;mso-pagination:none;mso-layout-grid-align:none;



punctuation-wrap:simple;text-autospace:none">This study examines the relationship between corporate governance and financial performance of randomly selected listed banks in
Nigeria. It investigates corporate governance variables and analyses whether they impact on firm performance as measured by return on asset (ROA) and profit margin (PM). Based on the review of existing literature, four corporate governance variables were selected namely: composition of board member, board size, CEO status and ownership concentration which served as the independent variables.
 This research examined the relationships that exist between governance mechanisms and financial performance in the Nigerian consolidated banks.And also to find out if there is any significant relationship between the level of corporate governance disclosure index among Nigerian banks and their performance. The Pearson Correlation and the regression analysis were used to find out whether there is a relationship between the corporate governance variables and firm‟s performance. In examining the level of corporate governance disclosures of the sampled banks, a disclosure index was developed guided by the CBN code of governance and also on the basis of the papers prepared by the UN secretariat for the nineteenth session of ISAR (International Standards of Accounting and Reporting). The study therefore observed that a negative but significant relationship exists between board size, board composition and the financial performance of these banks, while a
positive and significant relationship was also noticed between directors‟ equity interest, level of governance disclosure and performance. Furthermore, the t- test result indicated that while a significant difference was observed in the profitability of the healthy banks and the rescued banks, no difference was seen in the profitability of banks with foreign directors and that of banks without foreign directors. The study therefore concludes that there is no uniformity in the disclosure of corporate governance practices by the banks. Likewise, the banks do not disclose in general how their debts are performing, by providing a statement that expresses outstanding debts in terms of their ages and due dates. The study suggests that efforts to improve corporate governance should focus on the value of the stock ownership of board members. Also, steps should be taken for mandatory compliance with the code of corporate governance while an effective legal framework should be developed that specifies the rights and obligations of a bank, its directors, shareholders, specific disclosure requirements and provide for effective enforcement of the law.





normal;mso-pagination:none;mso-layout-grid-align:none;text-autospace:none">
TABLE OF CONTENT






13.55pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Title Page……………………….. i





normal;mso-pagination:none;mso-layout-grid-align:none;text-autospace:none">Declaration…………ii





14.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Certification…………………iii





14.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Dedication…………………iv





14.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Acknowledgements……………v





14.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Table of Content………………………… vi





16.7pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">List of Tables……………………………………. vii





192%;mso-pagination:none;mso-layout-grid-align:none;punctuation-wrap:simple;




text-autospace:none">



" times="" new="" roman","serif""="">List of Figures………………………………… viii





1.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Appendices…………………………………ix





14.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Acronyms and Definitions………………. x





14.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Abstract…………………………………xi






10.0pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">CHAPTER ONE:





10.0pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">
Introduction





13.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Background to the Study………………..................... 1





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Statement of Research Problem…………………….. 6





7.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Objectives of Study…………………………. 10





6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">1.3    Research Questions................................................... 11





6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">1.4    Research Hypotheses........................................................... 12





6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Significance of the Study…………………………………………………………… 13





7.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Justification of Study……………………………………………………………….. 14





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Scope and limitation of Study………………………………………………………. 16





6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Summary of Research Methodology……………………………………………….. 17





6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Sources of Data ……………………………………………………………………. 18






10.0pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">CHAPTER TWO





10.0pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Literature Review and Theoretical Framework





6.6pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Introduction   ………………………………………………………………….…… 25





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">What is Corporate Governance?..........................................................26





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Historical Overview of Corporate Governance …………………………..…………28





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Corporate Governance and Banks…………………………………………………... 30





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Elements of Corporate Governance in Banks ……………………………...………. 34





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Regulation and Supervision as Elements of Corporate





7.1pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Governance in banks……………………………………………….. 36





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Corporate Governance Mechanisms………………………………..………………. 41





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Shareholders……………...…………………………………….42





7.4pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Debt Holders………………………………………………………….43





7.15pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Linkage between Corporate Governance and Firm Performance Practices………..46





16.7pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">The Role of Internal Corporate Governance Mechanisms in Organisational Performance………………………………………………………………. 59





2.35pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Role of Auditor……………………………………………………… 72





6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Role of the Board of Directors…………………………………….... 87





7.05pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">Role of Chief Executive Officer…………………………………….. 120


normal;mso-pagination:none;mso-layout-grid-align:none;text-autospace:none">CHAPTER THREE:

Research Methods






7.4pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none">Introduction……………………………………….…………………………………

137






7.45pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:31.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-31.0pt;

line-height:99%;mso-pagination:none;mso-list:l3 level1 lfo1;tab-stops:list 31.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">
font-family:" times="" new="" roman","serif""="">Research

Design…………………………………………………..………………… 137






6.9pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:31.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-31.0pt;

line-height:normal;mso-pagination:none;mso-list:l3 level1 lfo1;tab-stops:list 31.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">Study

Population………………………………………………………………..….. 139






6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none">Sample

and Sampling Method………………………………………….………….. 139






16.9pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none">Data

Gathering Method……………………………………………………..……… 140


margin-left:31.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-31.0pt;

line-height:normal;mso-pagination:none;mso-list:l3 level1 lfo1;tab-stops:list 31.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">Research

Instruments……………………………….……………..... 


margin-left:31.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-31.0pt;

line-height:normal;mso-pagination:none;mso-list:l3 level1 lfo1;tab-stops:list 31.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">Method

of Data Presentation………..………………………………. 141






6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;

line-height:normal;mso-pagination:none;mso-list:l5 level1 lfo3;tab-stops:list 27.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">Model

Specification…………………………………………………………………. 141






7.65pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;

line-height:normal;mso-pagination:none;mso-list:l5 level1 lfo3;tab-stops:list 27.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">Data

Analysis Method……………………………………………………………….


margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-27.0pt;

line-height:normal;mso-pagination:none;mso-list:l5 level1 lfo3;tab-stops:list 27.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">Content

Analysis……………………………………………………. 147






10.0pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none">  






normal;mso-pagination:none;mso-layout-grid-align:none;text-autospace:none">CHAPTER FOUR:

Data Analysis and Result Presentation

font-family:" times="" new="" roman","serif""="">






6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:31.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-31.0pt;

line-height:normal;mso-pagination:none;mso-list:l6 level1 lfo4;tab-stops:list 31.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">4.0          

Introduction………………………………………………….……………………..  151






6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






normal;mso-pagination:none;tab-stops:dotted 431.0pt;mso-layout-grid-align:none;

text-autospace:none">4.1    Data Presentation and Analysis.................................................................................... 152






6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:31.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-31.0pt;

line-height:normal;mso-pagination:none;mso-list:l0 level1 lfo5;tab-stops:list 31.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">4.2          

Data

Analysis (Preliminary)……………………………………………………......  164






10.45pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






normal;mso-pagination:none;tab-stops:dotted 431.0pt;mso-layout-grid-align:none;

text-autospace:none">4.3:   Data Analysis- Advance (Inferential

Analyses)........................................................... 166






6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none">4.3.1   Pearson‟s Correlation Coefficient Analysis............................................................... 166






7.1pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none">4.3.2       

Regression

Analysis ………………………………………………  170






6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:31.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:-31.0pt;

line-height:normal;mso-pagination:none;mso-list:l2 level1 lfo7;tab-stops:list 31.0pt;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">4.4          

Hypotheses

Testing……………………………………………..………………….. 173 






6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:




none;text-autospace:none">CHAPTER FIVE:

Summary of Findings, Conclusion and Recommendations






13.55pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






normal;mso-pagination:none;tab-stops:35.0pt;mso-layout-grid-align:none;

text-autospace:none">5.0       Introduction.................................................................................................................186






.5in;line-height:13.85pt;mso-line-height-rule:exactly;mso-pagination:none;

mso-layout-grid-align:none;text-autospace:none">
font-family:" times="" new="" roman","serif""=""> 






margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in;

line-height:normal;mso-pagination:none;mso-list:l0 level1 lfo1;tab-stops:list .5in;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">5.1             

Summary

of Work Done………………………..…………………………………. 186






13.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in;

line-height:normal;mso-pagination:none;mso-list:l0 level1 lfo1;tab-stops:list .5in;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">5.2             

Summary

of Findings………………………………………………………………. 188






6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:1.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-35.95pt;

line-height:normal;mso-pagination:none;mso-list:l0 level2 lfo1;tab-stops:list 1.5in;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">5.2.1       

Theoretical

Findings……………………………………………….. 188






6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:1.0in;margin-bottom:.0001pt;line-height:normal;mso-pagination:none;

tab-stops:dotted 427.0pt;mso-layout-grid-align:none;text-autospace:none">5.2.2   Empirical Findings............................................................................ 191






7.1pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






normal;mso-pagination:none;tab-stops:35.0pt dotted 428.0pt;mso-layout-grid-align:

none;text-autospace:none">5.3       Conclusion................................................................................................................ 196






6.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in;

line-height:normal;mso-pagination:none;mso-list:l1 level1 lfo2;tab-stops:list .5in;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">5.4             

Recommendations…………………………………………………………………..

197






6.8pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in;

line-height:normal;mso-pagination:none;mso-list:l1 level1 lfo2;tab-stops:list .5in;

mso-layout-grid-align:none;punctuation-wrap:simple;text-autospace:none">5.5             

Contribution

to Knowledge………………………………………………….…….. 199






13.85pt;mso-line-height-rule:exactly;mso-pagination:none;mso-layout-grid-align:

none;text-autospace:none"> 






normal;mso-pagination:none;tab-stops:dotted 431.0pt;mso-layout-grid-align:none;

text-autospace:none">Suggestions

for Further Studies............................................................................................ 199





Overall Rating

0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

AZhmdK85c0006e6818216.82926110, 8. (2018). IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF LISTED BANKS IN NIGERIA. Afribary. Retrieved from https://beta.afribary.com/works/corporate-governance-and-financial-performance-of-listed-banks-in-nigeria-7643

MLA 8th

AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 "IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF LISTED BANKS IN NIGERIA" Afribary. Afribary, 29 Jan. 2018, https://beta.afribary.com/works/corporate-governance-and-financial-performance-of-listed-banks-in-nigeria-7643. Accessed 24 Apr. 2025.

MLA7

AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 . "IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF LISTED BANKS IN NIGERIA". Afribary, Afribary, 29 Jan. 2018. Web. 24 Apr. 2025. < https://beta.afribary.com/works/corporate-governance-and-financial-performance-of-listed-banks-in-nigeria-7643 >.

Chicago

AZhmdK85c0006e6818216.82926110, 8Xoa6K95c0006e67e00e4.16014477 . "IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF LISTED BANKS IN NIGERIA" Afribary (2018). Accessed April 24, 2025. https://beta.afribary.com/works/corporate-governance-and-financial-performance-of-listed-banks-in-nigeria-7643