CORPORATE GOVERNANCE AND PERFORMANCE OF LISTED BANKS IN NIGERIA

Abstract

This paper examined the relationship existing between corporate governance and performance of listed banks in Nigeria. The secondary data were extracted from the annual financial statements of seven listed banks that dominated market and with data availability from 2015 – 2024. The size of the firm was also discovered to be a helpful indicator to enhance the work of the bank as shown through the returns on assets (ROA, coefficient?=?0.110, p?<?0.05), returns on equity (ROE, coefficient?=?1.025, p?<?0.01) and the Tobin Q (coefficient?=?0.009, p?<?0.01). The age of firms affected Tobin positively with coefficient of 0.433 significant at 0.01 but not significant at 0.001 in ROA and ROE. The effect of variables measured by board size, board independence, and board diversity was positive, but most variables had insignificant statistical values which indicated that the board has little influence on performance through their governance mechanism. According to the findings, age and firm size are good performance determiners in the Nigerian banks but corporate governance has mixed effects. The analysis therefore recommends the enhancement of professional capacity and effectiveness through the consolidation of board effectiveness and the promotion of diverse and inclusive board composition.