IMPACT OF CORPORATE GOVERNANCE ON THE FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This study examined the effect of corporate governance (audit committee composition, ownership concentration, managerial ownership) on the financial performance (earnings per share) of listed DMBs in Nigeria from 2014 to 2023. Secondary data were sourced from the individual financial reports of the listed deposit money banks in Nigeria. The sample adopted 13 listed deposit money banks in Nigeria. This study employed a regression model to estimate the relationship between corporate governance and the financial performance of listed DMBs in Nigeria. The results revealed that audit committee composition and managerial ownership exert significant positive effects on the performance of listed DMBs in Nigeria. Ownership concentration had an insignificant effect on the firm performance of listed DMBs in Nigeria. The study recommended that DMBs should ensure that audit committees comprise independent, skilled, and adequately trained members. Emphasis should be placed on enhancing oversight functions, risk management, and compliance to improve transparency and profitability. Furthermore, DMBs should consider mechanisms that allow managers to hold meaningful equity stakes, thereby aligning their interests with those of shareholders. Such alignment can enhance decision-making, accountability, and performance. Finally, CBN should continue monitoring large shareholder influence to ensure that dominant investors do not engage in practices that undermine the interests or operational efficiency of minority shareholders.