Corporate Governance and Financial Performance of Banks in Nigeria

Abstract

This paper studied the link between the corporate governance policies and the financial performance of banks in Nigeria. The population of the study is 21 listed banks on the Nigerian stock exchange. The researcher used the whole population as sample. Secondary method of data collection was adopted. The annual report of the sampled banks was used to ascertain the financial performance, while structural interview schedule was granted to sampled bank managers for the determinance of corporate governance. The review of related literature confirms to the researcher that corporate governance variables could be measure using (tenure of the CEO, board size, audit committee size, leverage, age of the bank, and management change) and financial performance variable could also be measured by the use of (value of assets, and capital base). The study determined the degree of relationship between corporate governance and financial performance of these banks in Nigeria with the aid of multiple regression analysis. The researcher discovered that, there was a statistically positive relationship between value of assets and management change in the sampled banks, with this finding, the paper calls for implementation and improvement of best changes by management, which will be transcended in to an improvement in the value of assets of the bank, which will lead to better financial performance at the long run.