IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 11 2023
DOI: https://doi.org/10.56201/jafm.v9.no11.2023.pg99.118

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The Effects of Corporate Governance on the Earnings of Quoted Commercial Banks in Nigeria

Okowa, Monday Ijeoma HND, PGD, MBA, M.Sc., ACA, ACTI, Omehe, Collins Isioma (B.Sc, M.Sc.), Prof. A.O. Okolie

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Abstract

This study examined the effect of corporate governance on the performance of commercial banks quoted on the Nigeria Stock Exchange. The study covers a period of 10 years, from 2011 – 2020, and used data from 10 banks in Nigeria quoted in the Nigeria stock exchange. Panel data were used with the aid of ordinary least squares estimation technique aided by e-view 9.0. The study result revealed that board size has a p-value of 0.0085 which shows that board size has a significant influence on profitability of quoted firms in Nigeria at 5% level of significance, leading to the rejection of the null hypothesis; board independence has a p-value of 0.00006 showing that board independence has a significant influence on the profitability of quoted Banks in Nigeria at 5% level of significance, leading to the rejection of the null hypothesis; board expertise has a p-value of 0.000 which shows that board expertise has a significant influence on the profitability of quoted Banks in Nigeria at 5% level of significance, leading to the rejection of the null hypothesis; bank size has a p-value of 0.9182 which shows that bank size does not have a significant influence on the profitability of quoted Banks in Nigeria at 5% level of significance, leading to the acceptance of the null hypothesis and women on board has a p-value of 0.5466 which shows that women on board does not have a significant influence on the profitability of quoted Banks in Nigeria at 5% level of significance, leading to the acceptance of the null hypothesis. The study concludes that corporate governance has a significant effect on the performance of quoted commercial banks in Nigeria. The study recommends that shareholders and other relevant stakeholders of quoted banks in Nigeria should look out for a balanced board system where there is high independence. They have the responsibility to agitate for more independent director

keywords:

Corporate Governance, Board Size, Independence, Gender and Bank Profitability

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References:

Adeusi, S., Akeke, N., Aribaba F., and Adebisi O. (2018). Corporate governance and firm financial
performance: Do ownership and board size matter. Academic Journal of Interdisciplinary
Studies, 2, 251-258.

Agbaeze, E.K. & Ogosi, C.D. (2018). Corporate governance and profitability of Nigerian banks.
European Journal of Scientific Research, 148, 358-367.

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