Effect Of Corporate Governance On The Profitability Of Listed Deposit Money Banks In Nigeria

Abstract

The study examined the effect of corporate governance on the profitability of Listed Deposit money banks in Nigeria. The specific objectives is to examine the effect of Board Size, Board meeting, Audit committee size and Board gender diversity on the profitability of listed deposit money banks in Nigeria. The ex-post-facto research design was used in the study to enable the researcher collect secondary data needed to measure the effect of the independent variable on the dependent variable. Secondary data was collected from Annual financial statements and publications of listed deposit money banks within a period of 2015- 2024. Multiple regression analysis was used to analyse the secondary data in the statistical package for social sciences and e – views version 7. The findings of the study revealed that corporate governance has a significant effect on the profitability of Listed Deposit money banks in Nigeria. This remained evident as corporate governance dimensions such as Board size (BSZ), Board Meetings (BOM) and Board gender Diversity (BGD) had a significant effect on the profitability (ROA) of Listed Deposit money banks in Nigeria. While Audit committee size (ACZ) had no significant effect on the profitability (ROA) of Listed Deposit money banks in Nigeria. Thus, it was concluded that corporate governance has a significant effect on the profitability of Listed Deposit money banks in Nigeria. Based on the above, it was recommended that Listed Deposit Money Banks (DMBs) should balance board size for effective decision-making and diverse expertise, while regulatory bodies could set optimal size guidelines. Regular board meetings should focus on compliance, strategy, and performance monitoring. Gender diversity on boards should be promoted for balanced decision-making and strategic thinking, supported by regulatory diversity policies.