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Nexus Between Corporate Governance Characteristics and Book Value Per Share of Listed Commercial Banks in Nigeria

Omemgbeoji Chinedum Confidence CNA, Prof Micah C Okafor FCA, rof Josephine Adanma Nmesirionye CNA, Anyadighibe Joseph Amaechi PhD

Abstract

This study examined the nexus between corporate governance characteristics and book value per share of listed commercial banks in Nigeria. The study adopted ex-post facto research design. The population of the study consisted of all the 24 commercial banks while a sample of 14 banks that were listed in Nigeria Exchange Group were used in the study. Data for the study was sourced from the audited financial statement of all the 14 commercial banks that was selected for the study. The study utilized the Ordinary Least Squares Regression Analysis as the method of data analysis, having presented the descriptive statistics and the Pearson Correlation analysis. Having used book value per share as dependent variable and board size, board independence and audit committee size as the proxies for corporate governance and the independent variable, the following findings were made: Audit committee size have a negative but significant influence on Book value per share of listed commercial banks in Nigeria. Board independence associates negatively but statistically significant influence on the Book value per share of listed commercial banks in Nigeria. Board size have a positive and significant influence on the book value per share of listed commercial banks in Nigeria. The study highlights the following possible recommendations: The board should comprise of mix of executive and non-executive directors with professional skills, headed by a detailed chairman. The audit committee should consist of men of experience and integrity; they are to be directly responsible to the shareholders and be independent of the board of directors and the management. The board size should be large and most made up of qualified professional with skills, experience and conversant with oversight function,

Keywords

Corporate governanceMonitoring MechanismFirm ValueCommercial banks.

References

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