Corporate Governance Characteristics and Firm Value of Deposit Money Banks in Nigeria


The degree of corporate and market procedures, lack transparency, distortions and poor corporate practices which results in corporate failures and abysmal corporate financial performance negatively influence corporate objectives. Hence, this study investigated the effects of corporate governance mechanism on the value of deposit money banks in Nigeria. The study population consisted of all deposit money banks and Taro Yamene method of sample size determination was applied. The secondary data for the study was from the published financial statements of sampled banks for the period after validity and reliability test of data. The data obtained was tested using univariate, bivariate and multivariate analysis. The result from the multiple regression result disclosed that board independence, board size, ownership structure, gender diversity and board meeting positively and significantly influences the value of deposit money banks in Nigeria. The study concluded that corporate governance attributes positively and significantly affects the value of deposit money banks in Nigeria. The study made several recommendations amongst others that board sizes should be enhanced as this allows for the appropriate combination of directors. A large board increases the chance of directors having appropriate knowledge, skill and networks. The knowledge, skill and networks of directors may increase the financial performance of an organization. Also deposit money banks in Nigeria should have non-executive directors who act as professional advisers to ensure that competition among insiders encourages measures consistent with maximization of shareholder value.

Keywords: Board independence, Board size, Firm Value, Gender diversity


Article Review Status: Published

Pages: 84-108 (Download PDF)

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