Board Composition and Financial Performance of National Deposits Money Banks in Nigeria

Files

13 July(2018).pdf (2.14 MB)

Date

2018-07-13

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

Department of Accounting, Faculty Of Administration, Nasarawa State University, Keffi

Abstract

Performance of banks has been identified as critical to the development of any economy. Equally, the boards of these banks also occupy a critical role in their performance as they are responsible for their success. The study examined the effect of board composition on the financial performance of deposit money banks in Nigeria. Secondary data were extracted from the annual reports and accounts of these banks. To achieve the objective of the study, multiple regression technique was adopted using the stata, version 12. The results showed that board size has negative but significant effect on the financial performance of the national deposit banks in Nigeria, non-executive directors have positive significant effect on the financial performance and independent non-executive directors have positive but insignificant effect on the financial performance of deposit banks in Nigeria. The study recommends less number of board size, between ten and fifteen which is around the mean taking into consideration the skills, competence, independence and availability for meetings. The study also recommends in line with corporate governance codes that emphasis be placed on non-executive directors although with great care and considerations.

Description

Keywords

Board composition, independent non-executive directors, net interest margin, non-executive directors

Citation

Abdulazeez, D. A., Ndibel & Mercy A. M. (2016). Coiporate governance and financial performance of listed deposit money banks in Nigeria. Journal of Accounting and Marketing, 5(1), 1-6. Abu, S. O., Opkeh, A. J. & Opke, U. J. (2016). Board characteristics and financial performance of deposit money banks in Nigeria. International Journal of Business and Social Science, 1 159-173. Adekunle, S. A. & Aghedo E. M. (2014). Corporate governance and financial performance of selected companies in Nigeria. European Journal of Business Management, 6(9), 53-60. Adeoye, A. & Amupitan, M. D. (2015). Corporate governance in the nigerian banking sector: issues and challenges. European Journal of Accounting and Finance Research, 3(5), 64- (9), 89. Adeusi, S., Akeke, N., Aribaba, F. & Adebisi, O. (2013). Corporate governance and firm financial performance: do ownership and board size matter. Academic Journal of Interdisciplinary Studies, 2,251-258. Akhalumeh, P., Ohiokha, F. & Ohiokha, G. (2011). Board composition and corporate financial performance: an analysis of evidence from Nigeria. Research Journal of Finance and Accounting, 2(4), 64-73. Akpan E. & Roman, H. (2012). Does corporate governance affect bank profitability: Evidence from Nigeria. American International Journal of Contemporary Research, 2, 135-145. Anderson, R., Mansi, S. & Reeb, D. (2004). Board characteristics, accounting report, integrity and the cost of debt. Journal of Accounting and Economic, 37, 315-342. Asuagwu, G. (2013). Implication of corporate governance on the performance of deposit money banks in Nigeria. Arabian Journal of Business and Management Review, 2, 107-119. Bawa, A. & Lubawa, M. (2012). Corporate governance and financial performance of banks in post consolidated era in Nigeria. International Journal of Science and Humanity Studies, 4, 1309-1333. Bebeji, A., Mohammed, A. and Tanko, M. (2015). The effect of board size and composition on the financial performance of banks in Nigeria. African Journal of Business Management, 9(16), 590-598. Belkhir, M. (2009). Board of directors' size and performance in the banking industry. International Journal of Managerial Finance, 5(2), 201-221. Bhagat, S. & Black, B. (2002). The non-correlation between board independence and long term financial performance. Journal of Corporation Law, 27, 231-274. Biljawan, J. G. & Ladan, P. (2013). Board composition, ownership structure and firm performance. Research Journal of Economics and business studies, 2(6), 86-101. Central Bank of Nigeria (2014). Code of Corporate Governance for Banks and Discount Houses in Nigeria. 1-38. Chatterjee, C. & Nag, T. (2018). Board composition and financial performance, evidence from Indian and Chinese listed firms. South Asian survey, 22(2), 127-135. Doi: 10.1177/0971523117753435. Daily, C. M., Dalton, D. R. & Canella, A. A. (2003). Corporate governance; Decades of dialogue and data. Academic Management Review>, 28(3), 371-382. Falaye, A. (2017). The impact of board composition and structure on corporate financial performance in Nigeria. Retrieved from www.researchgate.net/publication/ Gheorghe, C. (2013). Effect of corporate governance on the net interest margin and solvency ratio: Evidence from Romania. Ovidius University Annals, Economics Science Series, 8(1), 1151- 1155. ICAN, (2014). Study Pack on Management, Governance and Ethics. UK, Emile Wolf. Koutsoyiannis, A. (2003). Theory of Econometric; An introductory exposition of econometric methods (2nd ed.). New York, Palgrave Houndmills. Kwambo, M. L. & Abdul-Qadir, A. B. (2013). Board composition, executive duality and performance of banks in the post-consolidation era in Nigeria. International Journal of Academic Research in Economics and Management Sciences, 2(1), 109-122. Kyereboah-Coleman, A. (2007). Relationship between corporate governance and financial performance: An African perspective. Ph.D Thesis, University of Stellenbosh, South Africa. Retrieved from https://scholar.sun.ac.za/handle/10019/1348 Larmou, S. & Vafeas, N. (2009). The relationship between board size and firm performance in firms with a history of poor operating performance. Journal of Management Governance, 14(1), 61-85.

URI

https://keffi.nsuk.edu.ng/handle/20.500.14448/2179

Collections

Conferences