Pages: (1-28 )
Abstract
Previous research has explored the role of corporate governance mechanisms in shaping financial performance across various industries. While studies have provided valuable insights into governance factors like board size, independence, and CEO duality, findings have been inconsistent, particularly in the context of developing economies. In Nigeria, where banking regulations and governance structures differ significantly from those in developed markets, there is a clear gap in understanding how these factors specifically influence profitability. This study seeks to fill that gap by focusing on the Nigerian banking sector, aiming to offer a clearer picture of the relationship between corporate governance and bank profitability. The study used ex-post facto design and multiple regression via E-Views, findings revealed that board size had a significant negative effect on ROE (coefficient = -3.312, p = 0.001), implying larger boards may hinder performance. CEO duality positively influenced ROA (coefficient = 0.031, p = 0.043), while board independence had no significant effect on ROA or ROE. R-squared values for ROA, ROE, and ROCE were 0.510, 0.658, and 0.283, respectively. The study recommended optimizing board size, strengthening board independence, and contextually evaluating CEO duality. It also emphasized the need for further research into other governance variables influencing bank performance.
Keywords: Board Size, Board Independence, CEO Duality, Return on Assets, Return on Equity,