Bank Heterogeneity, Chief Executive Officer (CEO) Attributes and the Value Relevance of Accounting Information in Nigerian Banks

This research assessed the interconnectedness between bank heterogeneity, chief executive officer’s attributes and the value relevance of accounting information of commercial banks in Nigeria. The study utilized secondary data that were obtained from the financial statements of 11 commercial banks relevant authorization license. The data used covered a period of 5 years (2018 – 2022). Three specific objectives and research questions were advanced and the relevant null hypotheses were postulated in the course of the study, and were tested at 0.05 level of significance. The ex-post facto research design was employed in the study and both the descriptive and inferential statistical tests were conducted on the data obtained from the annual reports of the sampled banks. Based on the test of hypotheses, it was found that both bank heterogeneity and CEO attributes exert individual and joint significant influence on the value relevance of accounting information of commercial banks in Nigeria. This underscores the level of compliance with relevant global bests practices and the resilience of Nigeria’s commercial banks amidst economic turbulence. Based on these outcomes, it was recommended that commercial banks should always align the selection of CEOs with their specific strategic objectives and capitalize on their CEOs' unique strengths and attributes to drive competitive advantage and enhance value relevance. In addition, banks should invest in continuous training and professional development for CEOs and top management, focusing on emerging financial trends, regulatory changes, and ethical leadership. This will help align CEO decisions with the long-term interests of the bank and its stakeholders. The study thus contributes to knowledge by providing insights on financial disclosures regarding CEO attributes and bank-specific characteristics which can equally help investors and analysts better assess the potential impact of CEO attributes and bank heterogeneity on financial performance and value relevance.