Corporate governance, risk management and financial performance of listed deposit money bank in Nigeria
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Taylor and Francis Online
Abstract
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This study examined corporate governance, risk control in deposit money banks and how operational
problems within commercial banks and information on them in Nigeria has been hoarded to a great
extent. The result shows a negative but a significant impact on bank's financial performance. However, a
corporate‐governance system that is sound increases the profitability of loans as well as the stability of
banks. Furthermore, the study finds that board size, board independence, directors’ shareholdings and
board meetings are negative while the coefficient number of board committee is positive on Tobin Q. It,
therefore, means that there exists between the corporate governance a significant relationship with
financial performance. Shareholders, board meetings & members of the board does have negative
relationship to performance. In contrast, the coefficient for the number of board sizes, board
independence & board committees are positive on ROE‐Return on Equity. This shows that any increase
in shareholding of directors, the directors of the board and board of directors would result in decreased
ROE of deposit money banks (DMB) in the economy of Nigeria. This research then recommends proper
corporate risk management practices should be encouraged with financial institutions carrying out
frequent quality control checks to ensure compliance.
Keywords
HF5601 Accounting