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Corporate Governance Characteristics and Financial Performance of Deposit Money Banks in Nigeria

Author

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  • Olayemi Ayoola-Akinjobi (PhD)

    (Joseph Ayo Babalola University, Ikeji-arakeji, Osun State, Nigeria)

  • Adeoye Olaoluwa Atibioke

    (Joseph Ayo Babalola University, Ikeji-arakeji, Osun State, Nigeria)

Abstract

Corporate governance plays a critical role in shaping the financial decision-making processes of firms by defining the relationships among management, boards of directors, shareholders, and other stakeholders. This study investigated the effect of corporate governance characteristics on the financial performance of deposit money banks in Nigeria. Adopting an ex-post facto research design, the study analyzed panel data from ten selected deposit money banks listed on the Nigerian Exchange Group (NGX) over the period 2014 to 2024. Data were sourced from audited financial statements and analyzed using panel regression techniques. Results indicated that board size had positive and insignificant effect on return on equity with p-value (0.9568) while ownership structure had negative significant effect on return on equity with p-value (0.2835). It is recommended that deposit money banks continually monitor their corporate governance practices to address the unique challenges and opportunities within the financial sector.

Suggested Citation

  • Olayemi Ayoola-Akinjobi (PhD) & Adeoye Olaoluwa Atibioke, 2025. "Corporate Governance Characteristics and Financial Performance of Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 4694-4703, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:4694-4703
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    References listed on IDEAS

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    1. Peter Ackah & Emmanuel Mensah & Timothy Azaa Ayamga & Paul Muda & Mamdouh Abdulaziz Saleh Al-Faryan, 2024. "Ownership structure dynamics and firm governance quality: Panel regression evidence from Sub-Saharan Africa," Cogent Business & Management, Taylor & Francis Journals, vol. 11(1), pages 2420768-242, December.
    2. Hani El-Chaarani & Rebecca Abraham & Yahya Skaf, 2022. "The Impact of Corporate Governance on the Financial Performance of the Banking Sector in the MENA (Middle Eastern and North African) Region: An Immunity Test of Banks for COVID-19," JRFM, MDPI, vol. 15(2), pages 1-21, February.
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