EFFECT OF CORPORATE GOVERNANCE ON FINANCIALPERFORMANCE. A STUDY OF SELECTED BANKING FINANCIALINSTITUTIONS IN NIGERIA.

Abstract

The study assessed ef ect of corporate governance on financial performance. Specifically, the study used First Bank of Nigeria PLC, GT Bank Plc, Zenith Bank Plc, UBA Plc, and ACCESS bank Plc as case study. In line with the broad objective, thestudy investigated the ef ect of Audit Committee, Board Size, and board compositionon Return on Asset (ROA) of selected banks. The ex-post facto research designwas
adopted in this study. Data was collected using secondary source of data, while thepooled regression model was used in this study to ascertain the relationship betweenthe variables in the study. Findings of the study revealed that: Audit Committee havea positive and significant ef ect on Return on Asset (ROA), Board size has a negativeand significant ef ect on ef ect on Return on Asset (ROA), while board compositiondoes not significantly af ect Return on Asset (ROA) of selected banks. It was
recommended that: the audit committee members should be permitted to operateindependently, and the audit committee's membership should be reviewed onaregular basis to increase transparency in the audit committee's performance of its
duties. Additionally, banking financial institutions and other organizations shouldhave a reasonable board size that includes more non-executive directors
(representatives of the shareholders) than executive directors. It was recommendedthat a balanced board composition be implemented in response to the observedassociation between board composition and the financial performance of deposit
money institutions as measured by ROA (with emphasis on women inclusion in board).