Impact of Corporate Governance Ownership Structure and Performance of Commercial Banks in Nigeria
Abstract
The study investigates corporate governance ownership structure and performance of commercial banks in Nigeria. The aim of this research is to find out how commercial banks in Nigeria fare when it comes to corporate governance and ownership structures. This study used an ex post facto research design. The 26 commercial banks that are part of Nigeria's population are those that are listed by the CBN and the NGX. The 26 commercial banks that made up the sample were chosen using a purposeful sampling technique. Secondary data was soured from the annual reports and financial statements of the sampled commercial banks, Nigeria Exchange Group, Central Bank of Nigeria (CBN), and financial regulatory reports. Descriptive statistics and regression analysis were used to run the data analysis using econometric software such as E-view. The findings reveal that concentrated ownership positively influences bank performance, as measured by EPS, while managerial ownership has no significant relationship with EPS. In conclusion, the research shows that commercial banks in Nigeria's ownership structure affects their financial performance, particularly their earnings per share (EPS).Recommendations were that commercial banks in Nigeria should implement robust corporate governance policies that promote accountability and transparency in ownership structures and banks should strive for a balanced mix of ownership, incorporating institutional investors, foreign stakeholders, and managerial ownership to optimize performance. While concentrated ownership can improve oversight and governance, excessive control.
Keywords
Ownership StructureCorporate GovernancePerformanceCommercial Banks
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