Effect Of Corporate Governance On The Financial Performance Of Selected Listed Banks In Nigeria

ABSTRACT

This study examines the effect of corporate governance on the financial

performance of three listed commercial banks in Nigeria. Specflcaliy, it

evaluates the effect of corporate governance on returns on assets of selected

commercial banks in Nigeria and ascertains the effect of corporate governance

on earnings per share of the selected commercial banks. The study adopted the

longitudinal research design because it involves a cross-sectional and time

series data. Secondary data used for the study was obtained from the annual

financial statement of the banks for the period of 10 years (2005-2014) for two

of the three selected listed banks. The variables used for corporate governance

is Board size (BOS), Audit committee (ACO) and board composition (BOC)

while Returns on Equity (ROE), Return on Assets (ROA), and Earnings per

share were the performance variables. Ordinary least squares and multiple

regression were used to analyse the data. The result showed that corporate

governance signIcantly influenced commercial banks financial performance

within the period under study. This study recommends that the regulatory

authorities should keep an eagle eye on corporate governance practices of the

commercial banks as it is one of the major determinants of financial

performance of commercial banks in Nigeria.