EFFECT OF CORPORATE GOVERNANCE CODES ON RETURN ON EQUITY OF NIGERIAN DEPOSIT MONEY BANKS

Abstract

The central bank of Nigeria in a bid to curb the turbulence that had troubled the Nigeria banking industry for decades introduced the Codes of Corporate Governance in order to stabilize the industry and enhance the banks performances. It is against this backdrop that this study examined the effect of corporate governance codes on the return on equity of the Nigeria deposit money banks. The study used secondary data from a sample of ten banks covering eight years and employed multivariate regression techniques, ordinary least squares in the study. The study finds that corporate governance codes have an insignificant positive effect on return on equity of the selected banks. Consequently, the study recommends that corporate governance codes should be further reviewed so that they can significantly improve on profitability of deposit money banks in Nigeria.