Effect of Corporate Governance Practice and Bank Regulatory Capital on Performance: Evidence from Deposit Money Banks in Nigeria

Abstract

This study examine the effect of corporate governance practice and regulatory capital on the performance of deposit money banks in Nigeria. The study employed a panel data, covering 9 years period across 14 listed deposit money banks in Nigeria. An ordinary least square (OLS) regression was used to analyzed the data for the study. Breausch and Pagan LM and hausman test were conducted to ascertain the best model between pooled OLS, random effect and fixed effect. The study found that board size, non-executive directors and bank regulatory capital have a significant positive effect on the performance of deposit money banks in Nigeria, while role duality was insignificant. Based on the findings, the study recommend compliance to any good corporate governance practice and bank regulatory capital to maintain healthy banks.