CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF FIRMS IN NIGERIA: EVIDENCE OF MONEY DEPOSIT BANKS

The study examined corporate governance and financial performance of the banking industry in Nigeria. The objective of the study was to examine the impact of board size and board composition on financial performance of banks in Nigeria. The study used a sample of 13 quoted banks among the 15 banks currently quoted on the floor of the stock exchange as at December 31st, 2016 for the period of 5 years (2012-2016) and employed multiple regression technique for the data analysis with the help of EViews 8.0 econometric software. The results showed that board size and board composition had negative significant impacts on financial performance of banks in Nigeria. The study therefore concludes that board size and board composition are determinants of financial performance of banks in Nigeria. The study recommended that management should streamline the number of board members and also reduce the number of outside directors on the board so as to improve the financial performance of banks.