BOARD ATTRIBUTES, CORPORATE GOVERNANCE COMPLIANCE AND CAPITAL ADEQUACY OF COMMERCIAL BANKS IN NIGERIA

Abstract This study investigated the effect of board attributes and corporate governance compliance on the capital adequacy of commercial banks in Nigeria, focusing on eight banks with international licenses as of 31 December 2023 over the period 2013–2023. Adopting an ex-post facto research design, data were obtained from the published annual reports of the sampled banks and analyzed using both descriptive and inferential statistical techniques. The findings reveal that board meetings and corporate governance compliance exert a significant negative influence on capital adequacy, while board size has a negative but statistically insignificant effect. The results suggest that larger boards and more frequent meetings do not necessarily translate into stronger capital positions, thereby calling for a critical reassessment of existing governance strategies. Furthermore, higher levels of corporate governance compliance were not found to enhance banks’ capital base. The study recommends that bank boards periodically evaluate the effectiveness of meetings and reassess board size to strike a balance between diverse expertise and efficient decision-making. It contributes to the literature by providing fresh empirical evidence on governance compliance and capital adequacy within the Nigerian banking sector.