CORPORATE GOVERNANCE EFFECT ON BANK PERFORMANCE IN NIGERIA

CHIGOSIMUZO AGUNOBI, ATTA SAMUEL AKU, ISAAC IRENE

Abstract


This research paper focused on the effect of corporate governance on performance of Nigerian deposit banks. Management is crucial to the ultimate survival of any organization, and the financial institution is not an exemption. Due to the critical role played by banks in the economy, it is paramount that effective governance of these banks is implemented to avoid any possible failure among other variables that could lead to bank failure. Multiple regression model was adopted as the methodology for this study. Return on average assets (ROAA) was adopted as the proxy for bank performance and liquidity ratio (LR) was adopted as proxy for corporate governance. Secondary data sourced was based on 20 years (2001 – 2020) progressive annual reports and financial statement of the central bank of Nigeria, Nigerian deposit insurance commission. From the regression result, the coefficient of LR is positively signed and its p-value is less than 0.05, which implies corporate governance has a positive and significant impact on bank performance.

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References


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