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The Impact of Corporate Governance on Financial Institutions in Nigeria

Dr. Preye Edward Gesiye Angaye, ACCA

Abstract

Corporate governance is an important part of today's business world. It has a significant effect on how financial companies work and how effectively they do their jobs. When it comes to Nigeria, corporate governance has a significant effect on banking institutions because they play such an essential role in the country's economy. This article contributes to the extant literature whilst examining and assessing the many consequences of corporate governance on financial institutions in Nigeria. The study encompasses financial institutions that are publicly traded on the Nigerian Stock Exchange (NSE). A sample of 20 financial institutions was selected for the period from 2013 to 2022 as these 20 financial institutions met the inclusion criteria of the study, which included: banks already listed on the NSE before 2013, banks with yearly financial statements available to the public from 2013 to 2022 and finally the financial institutions must be commercial banks. Overall, the regression analyses provide valuable insights into the relationship between corporate governance mechanisms and financial performance metrics in Nigerian financial institutions. However, the mixed findings highlight the need for additional research to unravel the complex interplay between corporate governance and firm profitability.

Keywords

Corporate GovernanceFinancial PerformanceBoard SizeBoard Independence

References

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