Corporate Governance Mechanisms and Financial Performance of Listed Commercial Banks: Empirical Evidence from Nigeria

Abstract

This study examined corporate governance mechanisms and financial performance of Nigerian listed commercial banks. The population of the study consists of all the twenty five commercial banks in Nigeria. A sample of fourteen (14) commercial banks was selected and data were collected over the period 2010 to 2017. Inferential statistics consisting of Panel Estimation Least Square (ELLS) with fixed effect and the General Method of Moment were used for the data analysis. The results obtained reveal that corporate governance mechanisms exerted significant impact on commercial banks financial performance in Nigeria. Specifically, ownership concentration and managerial ownership were positive and significantly impact the financial performance of commercial banks in Nigeria whereas board size positively and significantly. impact financial performance of banks over the reference period. Board gender diversity and board independence were significant and exert negative influence on financial performance of the commercial banks in Nigeria. The study recommended that there has to be a designed framework to efficiently and effectively monitor the interaction between corporate governance and commercial bank financial 'performance. This will drastically minimized the tendency for them to engage in rent seeking behaviour.