Effect of Corporate Governance on Liquidity of Deposit Money Banks Listed on Nigeria Exchange Group Ltd.

Abstract

This study investigates the effect of corporate governance on the liquidity of deposit money banks listed on Nigeria exchange group limited covering the period 2014 to 2023 financial years. The study specific objectives included to x-ray the effect of board gender diversity, board independence and board size on the liquidity of deposit money banks in Nigeria. The study was built on agency theory that buttresses opportunistic behaviour of managers and role of the Board to strike congruency on the divergent objectives. Ex post facto research design was used which allowed extraction of financial data from annual reports and accounts of the banks thirteen banks that were selected from the population of nineteen deposit money banks, on the basis of convenience of the researcher. The data was tested for normality while correlation and Ordinary least square regression estimation was employed on the generated data. The results imply that board independence and board gender diversity have both positively and statistically significant effect on liquidity of deposit money banks in Nigeria. While board size has positive no significant effect on liquidity of deposit money banks in Nigeria. The study therefrom recommends amongst others that shareholders should optimize the appointment of female gender to the board, to tap from their multi-task ability function that will enhance the liquidity of the deposit money banks listed on Nigeria exchange group.