Nigerian Exchange Research Articles

Board risk committee composition and risk-taking of deposit money banks in Nigeria

Risk oversight by bank boards has become complex due to the evolving nature of risk and thus the need for risk committees to effectively and adequately monitor bank risktaking. The risk taking capability of a financial institution is largely a function of its risk management committee composition. While studies have examined the effect of risk committee dynamics on several organisational variables, few studies examined the relationship between risk committee composition and the risktaking behaviours of banks. However, these few studies are limited to examining the effect of the existence of a standalone risk committee. Hence, the main purpose of this study is to examine the effect of banks’ board risk committee composition on the risktaking behaviour of deposit money banks in Nigeria. The study used a sample of twelve deposit money banks listed on the Nigerian Exchange Group (NGX) from 2009 to 2020. Data were analysed using DriscollKraay’s Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence (SCC) model to address heteroskedasticity and cross-sectional dependence. The results showed that risk committee independence and financial expertise reduce risk-taking. It, therefore, showed that the independence and financial expertise of the risk committee provide the needed competency and independence to effectively monitor risk-taking. The study, therefore, recommends, among others, the review of the composition of the board risk committee to reflect independence and expertise. The study differs from other studies by examining risk committee composition rather than its existence.

Accounting Ratios and False Financial Statements Detection: Evidence From Nigerian Quoted Companies

The broad objective of the study was to investigate accounting ratios and false financial statements detection. The study was a descriptive survey in design. This study employed pooled data from firms listed in the Nigerian Exchange Group PLC, covering a period of 5 years (2017- 2021). A total of 239 firms quoted on the Nigerian Exchange constituted the population of the study. The study relied on secondary data. Historical data were obtained from the annual financial reports of accounts of 10 purposively sampled service sector firms. Data obtained were analysed using descriptive statistics, Pearson correlation and Pooled Data Binary logit regression analysis. The findings of the study revealed that profitability has a positive relationship with false Financial Statement detection. However, profitability and leverage ratios do not significantly relate to the probability of Financial Statement fraud occurrence. Based on the findings, it was recommended that the firm’s financial managers should note with caution, the negative relationship between financial ratios and the firm’s profitability. Hence, if the purpose of financial management is to improve fraudulent detection, then such efforts must be improved in using financial ratios to detect fraudulent financial reporting.

ACCOUNTING VARIABLES AND SHARE PRICE: AN EMPIRICAL STUDY ON QUOTED DEPOSIT MONEY BANKS IN NIGERIA

Share price shows the strength of a business enterprise in the stock market and reflects investors’ perception to earn income in the future. Accounting variables have an impact on share price, however studies on accounting variables and share price have produced conflicting findings, necessitating additional empirical research. This study examined the relationship between accounting variables and share price of Deposit Money Banks (DMBs) quoted in Nigeria. Ex-post facto research design was employed in the study. The population of the study consisted of twenty-two (22) DMBs quoted on the Nigerian Exchange Group (NGX) as at December, 2019. Ten listed DMBs were selected using judgmental sampling technique. Data were collected from audited financial reports of the selected quoted DMBs for 10 years from 2010 to 2019. The study used descriptive and inferential statistics to analyse data. The results indicated that accounting variables without moderating effect of age and firm size impact market share price (MSP) with Adjusted R2 of 0.698, F -Statistic of 46.661 and p-value of 0.000. It was also revealed that with moderating effect of age and firm size, accounting variables significantly affect market share price with Adjusted R2 of 0.699, F-statistic of 33.896 and p-value of 0.000. The study concluded that accounting variables have significant impact on MSP of DMBs. The study recommended that Directors of DMBs in Nigeria should ensure prompt payment of dividends to shareholders and investors should use dividend per share (DPS) to predict MSP of DMBs quoted on the NGX.

Exchange Rate Regimes and the Performance of the Real Sector in Nigeria

Within the international market system, the exchange rate has been a critical criterion for determining the relative power of a domestic currency in comparison to another. Essentially, Nigerian exchange rate policy has been aimed toward safeguarding the Naira against continual loss of its privileged position in the global monetary system from time to time. As a result, different exchange rate regimes have been adopted. Therefore, Exchange Rate Regimes and the Performance of the Real Sector in Nigeria was studied from 1970-2019.The output of real sector variables (agricultural sub-sector, industrial sub-sector, and services sub-sector) was examined using the Auto Regressive Distributed Lag Model technique. Nominal exchange rate and dummy variables of Regulated and Deregulated regimes were used as independent variables, while, controlling for net exports, inflation, bank credit to the private sector, foreign direct investment, external reserve. The results of the estimation revealed that regulated regime periods had a negative but insignificant association with real sector variables, while deregulated regime periods had a positive but insignificant relationship. By implication, the perpetual loss in value of Naira exchange rate remain a source of concern hence; the need to formulate a reliable exchange rate policy that can stand the test of time in Nigeria. In addition, the regulated exchange rate regime was loosely fixed with temporal government intervention in the foreign exchange market. Such monetary interventions have not yielded the desired results. The study recommended that a stronger exchange rate policy be developed that achieves the needs of primary exchange rate users, as well as that more bank credits be extended to the real and export sectors in order to produce high-quality outputs for export rather than relying solely on monetary intervention strategies by the Nigerian Central Bank.

International Financial Reporting Standard Adoption and Value Relevance of Accounting Information of Listed Deposit Money Banks in Nigeria

The study examined the effect of International Financial Reporting Standard (IFRS) adoption on value relevance of accounting information of listed deposit money banks (DBMs) in Nigeria for the period from 2007 to 2020. The pre IFRS adoption period spanned from 2007 to 2011 while post adoption period spanned from 2012 to 2020. The study adopted an ex-post facto research design because the study is purely secondary in nature. The population for the study consisted of all the 15 deposit money banks listed on the Nigerian Exchange Limited as at 31 st December 2020, with a sample size of 12 banks. The Ohlson model was adopted for the study. Using ordinary least square regression, the study found out that post IFRS adoption model has more explanatory power than the pre IFRS adoption period. Also, earning per share moderated by IFRS has a positive and significant effect on market price per share and book value per share moderated by IFRS has negative and significant effect on market price. The study concluded that earning per share is more value relevant with IFRS adoption of the listed deposit money banks in Nigeria while the value relevance of book value decreases with IFRS adoption of listed deposit money banks in Nigeria. The study recommended among others that prospective investors, shareholders, owners, and users of accounting data should place a greater emphasis on earnings per share, which has the strongest positive link with the market share price of listed DMBs in Nigeria

Intellectual Capital, Information Asymmetry and Cost of Equity Capital of Listed Consumer Goods in Nigerian Exchange Group

The objective of this study is to investigate statistically the influence of intellectual capital disclosure (IC) on cost of Equity capital. The study focused on listed consumer goods companies in Nigerian Exchange Group. The ex-post facto research approach was employed, using panel data sourced from published yearly financial reports of selected firms. The study covered 10 years from 2011 to 2020. Descriptive and inferential statistical tools were used in analyzing the data. The findings confirmed our hypotheses that specify the presence of a substantial and negative relationship between intellectual capital reporting with its four mechanisms (Physical capital, human capital, structural capital and Relational) and the cost of equity). The study found that intellectual capital reporting had significant effect on cost of equity capital of listed consumer goods in Nigerian Exchange Group (AdjR 2 = 0.3733; F-Stat. = 1.122; p = 0.034). Nonetheless, the results also showed that the controlling effects of information Asymmetry has a positive and insignificant influence on the Cost of common stock capital of consumer goods firm in Nigeria. The outcomes of this study are of great significance to rule formulators and organizations. Precisely, the knowledge of the influence of Intellectual capital reporting on cost of common stock of capital benefits policy formulators in the assessment of the costs and gains of disclosure. Furthermore, in relation to executives of companies, the findings revealed the advantage of improved IC reporting concerning the lessening in their cost of capital. This paper provides pragmatic confirmation of the relationship between Cost of equity capital and the extent of reporting in the four separate intellectual capital classifications (Physical, human; relational and structural capital). Keywords: intellectual capital; Human Capital VAIC model; Consumer Goods, Cost of Equity Capital DOI: 10.7176/PPAR/13-2-01 Publication date: March 31 st 2023

Drivers of Operating Profit: A Focus on Selected Firms’ Costs

The study evaluates how selected firms’ costs predict the directionality of operating profits of public listed consumer goods firms in Nigeria. Accordingly, the research intends to determine the effect of selling and distribution costs, cost of inventory and cost of labour on the operating profit ratio of the sampled firms. To achieve these objectives, the study adopts the ex-post facto research design. A total of 13 consumer goods firms was purposively sampled out of a population of 20 consumer goods firms that are listed on the floor of the Nigerian Exchange Group. Secondary data obtained from the 2011-2020 annual reports of the selected firms were analysed using descriptive statistics, correlation analysis and ordinary least square regression technique at 5% level of significance. Findings made showed that cost of inventory is positive, but does not significantly drive the operating profit ratio of public listed consumer firms in Nigeria, cost of labour is positive and significantly drives the operating profit ratio of public listed consumer firms in Nigeria, while selling and distribution costs are negative, but do not significantly drive the operating profit ratio of sampled firms. Based on these findings, the research concludes that when an effective costing system or technique has been established in the firm, there are efficient allocation and utilization of resources, which lead to minimization of costs and maximization of profit. It was therefore recommended that managers of consumer goods companies should strengthen envisaged control procedures to eliminate waste in their selling and distribution costs.

Impact of Insurance Sector Investment on the Capitalisation of Nigerian Exchange Group (1999-2021)

This study investigates the impact of insurance sector investment on the capitalisation of the Nigeria exchange group; for the period 1999-2021. Secondary data are collected from the Central Bank of Nigeria (CBN) statistics bulletin; 2021. The study uses the capitalisation of the Nigerian exchange group as the dependent variable. In contrast, total insurance investment, Total income of insurance companies, and total insurance premiums from the Nigerian exchange group are used as the explanatory variables to measure insurance sector investment. Hypotheses are formulated and tested using time series econometric techniques. The study indicates that total insurance investment has a significant positive impact on the capitalisation of the Nigerian stock market group. The total income of insurance companies has no significant impact on the Nigerian exchange group's capitalisation. The study reveals that total insurance premiums have a significant negative impact on the capitalisation of the Nigerian stock market group. The coefficient of determination indicates that changes in insurance sector investment variables can explain about 64% of the Nigerian exchange group's capitalisation variations. The study concludes that insurance sector investment has a significant impact on the capitalisation of the Nigerian exchange group. The study, therefore, recommends that there should be further consolidation in the Nigerian insurance market in conjunction with the National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC). Insurance businesses should increase stock market investments to get a better return on such assets. For the growing number of premiums traded on the Nigerian Stock Exchange, the premiums of insurance firms listed on the floor should be reasonable to the policyholders.

Effect of Managerial Ownership and Audit Committee Financial Expertise on Earnings Management of Listed Manufacturing Companies in Nigeria

Earnings management research has a long and rich history. However, the effect of managerial ownership and audit committee financial expertise on earnings management is rarely conducted in the developing countries like Nigeria. Therefore, this study examines how managerial ownership and audit committee financial expertise on earnings management of listed manufacturing companies in Nigeria. This study used the Roychowdhury approach to measure real earnings management. Thirty-four (34) manufacturing companies out of seventy-three (73) population that were listed on the Nigerian Exchange (NGX) from 2007 to 2021 was selected as sample size. Data was gleaned from the annual financial reports of the sampled companies for this study. Descriptive statistics, Pearson correlation, and quantile regression analysis are the econometric techniques used to test the analysed data and for hypothesis testing. Results from the study showed that managerial ownership significantly affects real-earnings management. When the effect was moderated by the financial expertise of the audit committee, the effect of ownership structure on real earnings management disappears. The result from the study show that managers of manufacturing firms in Nigeria should be encouraged to own more shares in the companies they manage in order to minimize real earnings management. The evidence can theoretically serve as a solid foundation for regulatory action, notably through improving the alignment of managers' and shareholders' interests. The results from this study have important implications for regulators, who will gain from understanding how managerial ownership affects real earnings management and improve the accuracy of financial reporting. The findings will also help policymakers and academics to understand how managerial ownership affects real earnings management in Nigeria.

Ownership Concentration and Earnings Management of Listed Manufacturing Firms in Nigeria: Audit Committee Financial Expertise

Significant corporate shareholders can exert undue pressure on managers to enhance earnings in order to increase corporate value, and that as a result of this undue pressure, managers to resort to earnings management practice in the corporations they manage. This study examined the moderating role of audit committee expertise on the relationship between ownership concentration and real-earnings management in Nigeria. The independent variable (ownership concentration) was measured as shareholders who have more than 5% equity stake in a company, and real-earnings management was measured using the Roychowdhury approach. Audit committee financial expertise which is the moderator, was measured in binary form, 1 if at least one member of the committee has accounting experience, and 0 otherwise. This paper used a sample of 34 manufacturing companies listed on the Nigerian Exchange (NGX) over a period of 15 years from 2007 to 2021. Data was collected from the annual financial reports of the sampled companies. Descriptive statistics, Pearson correlation and Quantile regression was employed for data analysis and the findings show OWNCON has a positive and insignificant effect on REM. However, when audit committee financial expertise was used as a moderator, the effect of ownership concentration on the real- earnings management of listed manufacturing companies in Nigeria became statistically significant. Based on the findings, the study recommends that manufacturing companies should have more concentrated owners because the higher the concentration the less tendency of REM of listed manufacturing companies in Nigeria.

Accounts Payable Turnover and Firm Performance of Quoted Manufacturing Firms in Nigeria

Purpose: The objective of this study is to ascertain the nexus of accounts payable turnover and firm performance of quoted manufacturing firms in Nigeria. Research methodology: This study adopted an ex-post facto research design. The sample comprised seventy-five non-financial firms quoted on the Nigerian Exchange Group (NGX). The study purposively selected all available non-financial firms during the study period: 2010-2019. This study utilized secondary sources of data, i.e., computed financial ratios from annual financial statements downloaded from the MachameRatios® database. The data were analyzed using multiple regression techniques. Results: There is a non-significant positive effect of the accounts payable turnover ratio on ROA (p=0.9729) and ROE (p=0.2669); and; a significant negative effect of the accounts payable turnover ratio on Tobin’s Q (p=0.0140). Limitations: The limitation of the study is the failure to account for endogeneity concerns in firm performance studies. Contribution: The study contributes to the working capital management literature and specifically to the credit management axiom. It also showed a differential effect of APT on various firm performance proxies which have significant implications for managers, e.g., finance officers in corporations that intend to utilize the accounts payable turnover as a strategy to grow the performance of the firm in the short and long term. Practical implication: The practical implication of this research is that managers can alter their firm performance from responsible accounts payable turnover management. Novelty: The study uses a unique dataset of non-financial firms within a framework of robust control variables to examine the relationship between APT and firm performance proxies.

Financial Leverage and Market Value of Listed Deposit Money Banks in Nigeria

Purpose: The study examined the effect of financial leverage on market value of listed Deposit Money Banks (DMBs) in Nigeria. Specifically, the study examined the effect of short term debt ratio, long term debt ratio, and debt to assets ratio on market value of listed DMBs in Nigeria.
 Methodology: The study adopted the ex-post facto research design. A sample of 12 DMBs was drawn from a population of 14 DMBs listed on the Nigerian Exchange Group using the filtering method. Data were sourced from annual reports and accounts of the sampled DMBs in Nigeria. The study period covered ten (10) years from 2011-2020. The random effect regression model was used for data analysis, based on the recommendations of the Hausman Specification Tests results.
 Findings: The results of the study suggested that while short term debt ratio has an insignificant positive effect on market value of DMBs in Nigeria, long term debt ratio has a perverse and insignificant effect on market value of DMBs in Nigeria. The result of the study further ascertained that debt to assets ratio has a significant positive effect on market value of DMBs in Nigeria.
 Recommendations: The study, therefore, recommended that DMBs in Nigeria should employ a higher proportion of debt financing especially when the funds will be used to increase assets utilization. The study also recommended that listed DMBs in Nigeria should prioritize short term component of financial leverage in their financing mix.

Audit Committee Attributes and Share Price Reaction of Listed Deposit Money Banks in Nigeria

This study investigated the effect of audit committee characteristics on share price reaction of listed Deposit Money Banks (DMBs) in Nigeria. Specifically, the study sought to examine the effect of audit committee independence, expertise, size, frequency of meetings and gender diversity on share price reaction of listed DMBs in Nigeria. The study adopted the ex-post facto research design. The study used a sample of 12 DMBs from a population of 14 DMBs listed on the Nigerian Exchange Group using the filtering method. Data were sourced from annual reports and accounts of the sampled DMBs in Nigeria. The study period covered ten (10) years from 2011-2020. Pooled Auto Regressive Distributive Lag (ARDL) Model was used for data analysis. The results of the study suggested that audit committee independence, size, frequency of meetings and gender diversity have a perverse and significant effect on share price reaction of DMBs listed in Nigeria. The result of the study also established that audit committee financial expertise positively but insignificantly affects share price reaction of DMBs listed in Nigeria. The study, therefore, recommended that financial expertise of the audit committee members should be given utmost attention by the board since it exerts a positive effect on share price reaction. This is supported by the requirements of CAMA 2020 which states in section 404 subsection (5) that all audit committee members should be financially literate and at least one of them should be a member of a professional accounting body established by an Act of the Nigerian Parliament. The study also recommended that DMBs should strive to maintain a small audit committee size below the stipulated maximum number of 5 as stipulated by CAMA 2020 for effective performance.

Effect of bankruptcy risk on value of conglomerate firms in Nigeria

The study examined the effect of bankruptcy risk on value of conglomerate firms in Nigeria. Ex post facto design was used and data for the study was collected from the Nigerian Exchange Group (NGX Group) Factbook covering from 2017-2021. The design was used since the data is secondary in nature which cannot be manipulated. The study used key proxy variables of leverage (LEV), liquidity (LIQ), profitability (PROF) and firm size (FS) as a measurement for bankruptcy risk while firm value on the other hand, was proxy using net assets per share (NAPS). Four hypotheses were used in the study while regression model was employed in the data analysis. The results of the study indicate that profitability, liquidity, leverage and company size significantly impacted firm value in Nigeria at 1-5% significant level. The study concludes that bankruptcy risk has influenced firms’ value over the years. Hence, the study is crucial as it exposits the influence of bankruptcy risk on firms value in Nigeria. The study's outcome should be considered as a signal to company managers when considering their liquidity position, leverage, profitability and company size, as it could be an indication for corporate bankruptcy risk.

Digital Accounting Practices and Financial Performance of Listed Deposit Money Banks in Nigeria

The study investigated the relationship between digital accounting practices and financial performance of Nigerian deposit money banks. Both primary and secondary sources were used in the study's examination of the research on Nigerian deposit money banks. The collected data was subjected to regression analysis. Regression analysis was used to predict the value of the dependent variables based on the knowledge about the explanatory factors used to assess the effect on the dependent variables. The eleven (11) deposit money banks registered on the Nigerian Exchange Group (NXG) were the population for this research; however, only nine (9) of such banks were actually sampled and included in the analysis. Among the study's results were positive connections between cloud accounting (CLA) and return on assets; also, blockchain technology had a positive relationship with return on assets. Therefore, the study concluded that the adoption of electronic accounting practices and financial performance of Nigerian deposit money banks. As a result, we propose digital activities in the banking industry and call for more research into digital activities in businesses since doing so may reveal even bigger investment prospects for investors among other things.

EFFECT OF BOARD DIVERSITY ON FINANCIAL PERFORMANCE OF QUOTED HOSPITALITY FIRMS IN NIGERIA

This study examined the effect of board diversity on financial performance of quoted hospitality firms in Nigeria for a period of nineteen years (19) years spanning from 2003 to 2021. Specifically, this study ascertained the effect of gender diversity, age diversity and board independence diversity on cash flow return on investment. The panel data sets used in this study were obtained from the annual reports and accounts and Nigerian Exchange (NGX) Group fact books for the study period. Ex-post facto research design was employed. Inferential statistics using Pearson Coefficient Correlation and Panel Least Square Regression analysis were applied to test the hypotheses of the study. The findings showed that Gender diversity has a significant and positive effect on cash flow return on investment (β1 = 0.141799; P-value = 0.0000 < 0.05); Age diversity has a significant and positive effect on cash flow return on investment (β2 = 0.018494; P-value = 0.0000 < 0.05); Board independence has a significant and positive effect on cash flow return on investment (β3 = 0.289258; P-value = 0.0000 < 0.05) at 5% level of significance respectively. The study recommended inter alia that Company boards should have an independent majority since an independent majority on the board is more likely to consider the best interests of shareowners first. In times of high environmental uncertainty, outside directors can link the firm with scarce resources, help in effective strategy development and execution which can ultimately improve firm performance

Predicting Stock Market Trends: A Bivariate Regression Analysis of Trading Volume Impact

Stock market prediction presents a perennial challenge for investors attempting to forecast the future value of traded stocks at the exchange. The allure of successful predictions, which can yield substantial profits, has driven this pursuit since the inception of stock markets. The 2008 financial crisis highlighted the complexity of market behaviour, emphasizing the need for a deeper understanding of stock market prediction. Regression analysis, a quantitative research method, quantifies relationships between dependent and independent variables. This study conducted a bivariate regression analysis to assess the predictive potential of traded volume on equity price movements within the Nigerian Exchange Limited (NGX or The Exchange), using Guaranty Trust Holding Company Plc (GTCO) historical data. The results revealed a statistically significant correlation (r=0.59) between volume (X) and price (Y). The regression equation (Y = 44.164 + 0.179X) demonstrated that 34.5% of price variance can be predicted from traded volume, indicating a reasonably strong relationship. These findings suggest a moderately robust association between trading volume and stock price movements. This implies that, to some extent, trading volume can guide predictions of stock prices. As investors seek to outperform the market, using linear Regression for stock price prediction remains an engaging area for further research, aiming to enhance return on investment. In conclusion, our linear regression model can generate more precise stock price predictions with a more extensive dataset. Keywords: Efficient market hypothesis, linear Regression, Price prediction, trading volume, Stock market.

Effect of Board Gender Diversity on Financial Performance of Quoted Deposit Money Banks in Nigeria

The monitoring role of the board of directors is a critical corporate governance and control mechanism, especially in countries like Nigeria where external control mechanisms are less well developed. This study examines the effect of gender diversity on financial performance of listed deposit money banks in Nigeria. The population comprises of all the deposit money banks in Nigeria while thirteen (13) listed deposit money banks were sampled, based on their being listed on the Nigerian Exchange Limited from the period 2010 to 2021. The data was analysed using Shapiro-Wilk Normality, Pearson correlation, Heteroskedasticity Breusch-Pagan Test, Hausman specification test and Breusch-Pagan Lagrangian Multiplier Test while hypotheses were tested using robust random effect regression model. The results show that gender diversity (GD) has a significant positive effect on financial performance of listed deposit money banks in Nigeria for the period under review. The study recommends that the owners and regulators of deposit money banks in Nigeria should increase the numberof women gender on their boards to about 45% to enhance their financial performance.

Corporate Governance Committees and Sustainability Reporting of Listed Consumer Goods Firms in Nigeria

This study investigated the impact of corporate governance committees (finance, risk, remuneration and audit) on corporate sustainability reporting of 20 sampled consumer goods firms in Nigeria. In order to achieve the above stated objectives, this study employed a correlational research design to analyze data from 20 listed consumer goods firms in Nigerian Exchange Group (NGX) for the period of twelve (12) years (2011-2022) both years all-encompassing. Also, stakeholder’s theory was used to underpin this study. The logistic regression result revealed that finance, risk, and audit committees have a statistically positive significant association with sustainability reporting of listed consumer goods firms in Nigeria. While on the other hand, remuneration committee documented a positive but insignificant correlation with sustainability reporting of listed consumer goods firms in Nigeria. This study calls for more studies on corporate governance committees and sustainability reporting in another domain other than the consumer goods firms.

Effect of Board Religion Diversity on Financial Performance of Quoted Deposit Money Banks in Nigeria

The effect of board diversity, like, gender, ethnicity, etc on financial performance have been widely studied. However, very few research have been carried out in the area of the the effect of religion diversity on financial performance. This study examines the effect of board religion diversity on financial performance of quoted deposit money banks in Nigeria. The population comprises of all the deposit money banks in Nigeria while thirteen (13) quoted deposit money banks were sampled based on their being listed on the Nigerian Exchange Limited all through the study period of 2010 to 2021. The data were analyzed using Shapiro-Wilk Normality, Pearson correlation, Heteroskedasticity Breusch-Pagan Test and Breusch-Pagan Lagrangian Multiplier Test while hypotheses were tested using Pooled Ordinary Least Square regression model. The results show that religion diversity (RD) has a significant positive effect on financial performance (proxied by return on assets (ROA)) of quoted deposit money banks in Nigeria for the period under review. The study recommends that the regulators – Central Bank of Nigeria (CBN) and boards of deposit money banks in Nigeria should encourage different religious practices on the boards of banks to enhance their financial performance in Nigeria.