CORPORATE GOVERNANCE ATTRIBUTES AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study investigates the relationship between corporate governance attributes and the financial performance of listed Deposit Money Banks (DMBs) in Nigeria. Focusing on key governance variables—board size, board independence, and ownership concentration—the research examines their impact on bank profitability measured by Return on Assets (ROA). Employing an ex-post facto research design, secondary data were collected from 50 observations spanning selected Nigerian banks. The analysis was conducted using multiple regression techniques to determine the significance and direction of these governance attributes on financial performance. Results indicate that board size and ownership concentration have a positive and statistically significant effect on ROA, suggesting that larger boards and concentrated ownership structures enhance firm profitability through improved oversight and alignment of interests. Conversely, board independence was found to have a negative and significant relationship with financial performance, implying potential drawbacks of excessive independence on effective decision-making. The study recommends that Nigerian banks adopt a balanced board composition and encourage strategic ownership concentration while ensuring that independent directors add real value through expertise and engagement. These findings contribute to the growing literature on governance and performance in emerging economies' banking sectors and offer practical implications for policymakers and bank managers.