Title: Corporate Governance (CG) And Financial Performance (FP) Of Deposit Money Banks (Dmbs) In Nigeria: Agency Theory Approach
Authors: EMO, Iditere Dauda & Prof. OSUJI, C. C.
Volume: 9
Issue: 3
Pages: 89-98
Publication Date: 2025/03/28
Abstract:
This study examines the impact of corporate governance (CG) on the performance of Nigerian deposit money banks (DMBs) from 2015 to 2024 through the lens of agency theory. It explores the relationship between CG factors-Board Size (BS), Board Independence (BI), Board Gender Diversity (BGD), Audit Committee Size (ACS), and Audit Committee Independence (ACI)-and financial performance, measured by Return on Equity (ROE). Data from the annual reports of ten DMBs will be analyzed using descriptive statistics, correlation analysis, and multiple regression via the OLS method. The pooled, random, and fixed effect models will be applied using E-VIEW 9.0 software. Findings suggest that DMBs should optimize board size to around ten members while maintaining regulatory compliance. This approach enhances efficiency, reduces costs, and positively influences financial performance, especially in the post-COVID-19 era.