Corporate Governance and Firm Performance: Evidence from Deposit Money Bank in Nigeria

Abdurrashid Ibrahim (), Adekanmi Aderemi Daniel (), Olaniyan Niyi Oladipo () and Olaleye Banji Rildwan ()
Additional contact information
Abdurrashid Ibrahim: University of Strathclyde
Adekanmi Aderemi Daniel: Federal University Oye-Ekiti
Olaniyan Niyi Oladipo: Federal University Oye-Ekiti
Olaleye Banji Rildwan: Federal University Oye-Ekiti

EuroEconomica, 2023, issue 1(42), 138-151

Abstract: This study examined the effect of corporate governance on firm performance in Nigeria. It specifically examined the effect of board director and managerial ownership on profit after tax of listed deposit money bank in Nigeria. Secondary source of data was employed through ex post facto research design. Census sampling technique was employed for the fourteen listed Deposit Money Bank spanning for the period of 2010- 2020 .84 observation were assessed using multiple regression model. A strong multiple regression model was used to analyze the nexus between board of directors and managerial ownership. The multiple regression result of the findings showed that board size has positive and significant effect on profit after tax with a coefficient of 0.319 at 0.005 level of significance, while managerial ownership has negative and significant effect on profit after tax with a coefficient of 0.102 at 0.005 level of significant (p=0.045). It was concluded that corporate governance has significant effect of firm performance of listed Deposit Money Bank in Nigeria Exchange Group. However, it was recommended that agency problem between manager and owners may be mitigated by keeping managerial ownership stake in a company low. This can assist keep costs down in the event of bankruptcy and provide for better oversight and control of management. With improved corporate governance provided by a larger board, firms may find it less difficult to get access to cheaper types of external capital, hastening the desired leverage ratio.

Keywords: Corporate Governance Board of Directors; Managerial Ownership; Profit After (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dj.univ-danubius.ro/index.php/EE/article/view/2195/2510 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dug:journl:y:2023:i:1:p:138-151

Access Statistics for this article

More articles in EuroEconomica from Danubius University of Galati Contact information at EDIRC.
Bibliographic data for series maintained by Florian Nuta ().