Aug 2026· Journal of Accounting and Financial Management· Vol 12, pp. 334-348· 0 citations
Abstract
This research investigates the impact of components of corporate governance, the disclosure
of liquidity risk, and the financial performance of Deposit Money Banks (DMBs) quoted on
the Nigerian Exchange Group (NGX). The study is motivated by the persistent problems of
fragility of the banking sector which have continued to exist despite regulatory reforms. In
this study, corporate governance is broken down to include mechanisms at the board level
(Corporate Governance Index - CG) and mechanisms at the committee level (Audit/Risk
Committee Mechanisms - ACM). In addition, liquidity risk disclosure is broken down to
include quantitative disclosure (QDIS). The study adopted an ex post facto research design
with a longitudinal approach. The study covered a ten-year period (2016–2025) and included
seven listed DMBs, which provided a total of 70 bank-year observations. Fixed-effects panel
regression analyses were applied, while leverage was included as a control variable. The
financial performance of the banks was evaluated using ROA and Tobin’s Q. The findings
indicate that CG had a positive and significant effect on Tobin’s Q (p=0.0174) but not on
ROA, while QDIS showed a highly positive and significant effect on Tobin’s Q (p=0.0003)
but no significant effect on ROA. ACM had no significant effect on both performance
measures. In the joint model, CG and QDIS were the only statistically significant predictors
of Tobin’s Q (Adjusted R²=0.2678, p=0.0011) while ACM remained statistically
insignificant. The study establishes that corporate governance and the quantitative disclosure
of liquidity risk were the significant predictors of the market-based performance of the banks,
with disclosure being the dominant control of bank valuation. The study recommends to
improve the quality of boards of directors, increase quantitative liquidity disclosures beyond
the level required by regulations, and provide more tailored regulations to clarify the
distinction of the board and committee functions. The study adds to existing literature by
breaking down the components of governance and disclosure and providing evidence of the
Nigerian banking sector after the reforms.
This study examines the effect of financial disclosure quality and corporate governance practices on the stock price stability of listed deposit money banks (DMBs) in Nigeria. The study adopts a panel design covering twelve deposit money banks listed on the Nigerian Exchange Group (NGX) with complete data for 2015–2024 (120 bank-year observations), addressing the generalisability limitation of single-bank case studies. Financial disclosure quality is proxied by the natural logarithm of annual audit fees, and corporate governance by the proportion of independent directors on the board. Bank size is included as a firm-level control, and inflation, the official naira/US-dollar exchange rate, and the Central Bank of Nigeria's Monetary Policy Rate are incorporated as macroeconomic controls. All variables, including stock-price volatility (the standard deviation of monthly returns within each financial year), are measured annually, eliminating the frequency mismatch identified in earlier drafts. The study is guided by agency theory and signaling theory, and estimates Pooled OLS, one-way Random Effects (Hausman-preferred over Fixed Effects, χ² (2) = 2.46, p = 0.292), and a two-way (bank-and-year) Fixed Effects robustness specification, alongside diagnostic tests for multicollinearity, heteroscedasticity, serial correlation, and normality. Financial disclosure quality has a positive, statistically significant relationship with share-price volatility in the baseline firm-level model (Random Effects: β = 1.345, robust p = 0.0001) but loses statistical significance once macroeconomic variables are added as separate regressors (β = 0.897, p = 0.197), reflecting substantial collinearity among the macro series (see caveat below). Consistent with this, once a two-way fixed-effects specification is used to absorb common time/macroeconomic shocks without that collinearity (VIF up to 13.2), the disclosure–volatility relationship likewise loses statistical significance (β = 2.297, p = 0.417), indicating that much of the apparent effect reflects a shared time trend rather than a robust within-bank relationship. Corporate governance (independent-director count) and bank size are not statistically significant in any specification. Among the macroeconomic controls, the Monetary Policy Rate is positively and significantly associated with share-price volatility (β = 0.096, robust p = 0.023), while inflation and the exchange rate are not significant since collinearity among the three-macro series is accounted for. The full model explains between 25% and 36% of the variation in share-price volatility depending on specification. These results support a more cautious conclusion than a single-specification analysis would suggest financial disclosure quality is associated with share-price volatility, but this relationship is sensitive to how macroeconomic and time effects are controlled for, while tighter monetary policy is a robust, independent driver of volatility. The findings have direct implications for bank executives, regulators — particularly the Central Bank of Nigeria (CBN) and the Financial Reporting Council of Nigeria (FRCN) — and investors and are discussed alongside international evidence to situate the Nigerian findings within the broader literature.
Oguntamu Oluwaleke, Obinna-Igbokwe Tonye, Okodugha Nathaniel· International journal of res...· 0 citations
This study investigates the impact of corporate governance mechanisms on the financial and
market-based performance of listed Deposit Money Banks (DMBs) in Nigeria. Utilizing a
balanced panel dataset comprising 14 quoted DMBs on the Nigerian Exchange Group (NGX)
over a ten-year period from 2016 to 2025, the study employed multiple regression analysis
within a panel data framework (Fixed and Random Effects models validated by the Hausman
specification test). Corporate governance is operationalized through five structural attributes:
Board Size (BDS), Board Independence (BIN), Board Gender Diversity (BGD), Board
Diligence/Meeting Frequency (BMF) and Audit Committee Effectiveness (ACE). Financial
performance is evaluated using Accounting-based metrics-Return on Assets (ROA) and Return
on Equity (ROE) alongside a market-based valuation proxy, Tobin’s Q (TQ). The findings
reveal that Board Size has a positive and significant effect on accounting returns, indicating
that larger boards in Nigerian banks leverage diversified institutional resources and advisory
networks. Conversely, Board Independence exhibits an insignificant influence on bank
performance, pointing to deep-seated institutional constraints where nominal independence
does not translate into autonomous executive monitoring. Board Gender Diversity and Audit
Committee Effectiveness exert positive and statistically significant impacts on performance
metrics, proving that boardroom inclusivity and rigorous internal oversight mitigate systemic
vulnerabilities and operational risks. Finally, Board Meeting Frequency displays a negative
and significant relationship with performance, implying that excessive emergency meetings
serve as a reactive mechanism to operational distress rather than a proactive planning
channel. Based on these insights, the study recommends that the Central Bank of Nigeria
(CBN) and the Securities and Exchange Commission (SEC) shift from rigid compliance-based
monitoring to substantive oversight frameworks that preserve the functional autonomy of
independent directors, foster gender mainstreaming and streamline board operations to
enhance long-term shareholder value and sectoral stability.
Odey Ferdinand Ite· Journal of Accounting and Fi...· 0 citations
The increasing volatility in Nigeria’s financial environment has heightened concerns about the stability of deposit money banks and the effectiveness of their risk management practices. Hedge disclosures have emerged as a critical mechanism for enhancing transparency, improving market discipline, and mitigating financial risks in the banking sector. This study examined the effect of hedge disclosures on the financial stability of deposit money banks in Nigeria, with specific focus on commodity hedge disclosure, interest rate hedge disclosure, and foreign exchange rate hedge disclosure. Financial stability is proxied using the Z-score. The study adopted an ex-post facto research design and utilized panel data obtained from the annual reports of thirteen (13) listed deposit money banks over an eleven-year period (2014–2024). Data were analyzed using descriptive statistics and panel regression techniques. Preliminary diagnostic tests, including panel unit root and Hausman tests, were conducted to ensure the validity of the model, and the Random Effects Model was selected as the most appropriate estimation technique. The findings revealed that commodity hedge disclosure has a negative and statistically significant effect on financial stability (β = -29.30522, p = 0.0008), indicating that increased disclosure of commodity hedging activities is associated with reduced bank stability. Similarly, interest rate hedge disclosure exhibited a strong negative and significant effect on financial stability (β = -70.45421, p = 0.0000), suggesting that interest rate hedging may increase financial vulnerability. In contrast, foreign exchange rate hedge disclosure showed a positive and statistically significant effect on financial stability (β = 13.64102, p = 0.0369), implying that effective management and disclosure of foreign exchange risks enhance bank resilience. The study concluded that the impact of hedge disclosures on financial stability is heterogeneous and depends on the nature of the risk being hedged. The study recommended that the Nigerian financial system should promote the development of more robust and liquid derivative markets, strengthen regulatory oversight, and encourage efficient hedging practices to enhance financial stability.
Olatunbosun Ogunjobi, I. A.· Journal of African Resilienc...· 0 citations
Financial scandals within corporate entities continue to erode investor confidence and
destabilize market integrity, with banking institutions being particularly vulnerable given their
central role in economic intermediation. This article examines the effect of corporate
governance on financial reporting quality in three systematically important Nigerian deposit
money banks: Access Bank Plc, Zenith Bank Plc, and Guaranty Trust Holding Company Plc
over the period 2014 to 2023. Specifically, the study investigates the impact of Board
Independence on Earnings Quality, and the impact of Audit Committee Effectiveness on
Disclosure Transparency. A longitudinal panel data design was employed, drawing on ten
years of audited annual reports. Simple regression analysis was applied to test two directional
hypotheses at a 0.05 significance level. Findings indicate that Board Independence exerts a
significant positive effect on Earnings Quality (β = 0.512, R² = 0.262, p < 0.01), while Audit
Committee Effectiveness also exerts a significant positive effect on Disclosure Transparency (β
= 0.589, R² = 0.347, p < 0.001). These outcomes are consistent with agency theory predictions
and corroborate findings from comparable emerging market studies. The article contributes
original empirical evidence to the governance-reporting quality debate in the Nigerian banking
literature and offers actionable policy insights for regulators, institutional investors, and bank
boards.
C. O. Nwambe· Journal of Accounting and Fi...· 0 citations
In order to guarantee accountability, transparency, and long-term success in banking
organizations, corporate governance is essential the banking industry in India is
distinguished by structural distinctions between public and private banks, especially with
regard to ownership, governance, andoperational effectiveness. This study looks at how
corporate governance practices affect certain Indian public and private sector banks'
financial resuls between 2019 and 2023.Using secondary data gathered from published
financial statements, regulatory reports, and governance disclosures, the study uses a
quantitative and comparative research design.
While Return on Assets (ROA), Return on Equity (ROE), Gross Non-Performing Assets
(GNPA), Net Interest Margin (NIM), and Capital Adequacy Ratio (CAR) are used to
measure financial performance, corporate governance variables include board
independence, board size, gender diversity on the board, and CEO duality. To investigate
the suggested hypotheses, statistical techniques such multiple regression models,
correlation analysis, independent samples t-test, and descriptive analysis are used with
SPSS. The findings show that public and private sector banks' financial performance and
governance frameworks differ significantly, with private banks showing better profitability,
asset quality, and governance efficacy. The findings of the regression show that while
CEO duality has a detrimental impact on bank performance, board independence and
gender diversity have a favorable and significant influence on financial performance.Strong
corporate governance practices are essential for enhancing financial efficiency and riskmanagement in the banking industry, especially for public sector banks, according to the
study's findings. In order to improve long-term financial stability and performance,
regulators, legislators, and bank management can develop governance structures with the
help of the findings.
I. Idewele· IIARD INTERNATIONAL JOURNAL...· 0 citations
This study aims to analyze the effect of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) on the financial performance of companies included in the LQ45 Index on the Indonesia Stock Exchange. LQ45 companies were selected because they represent firms with relatively high liquidity and market capitalization, as well as greater demands for transparency and accountability. This study employs a quantitative approach with a causal associative research design. The data consist of secondary data obtained from companies’ annual reports and sustainability reports for the 2023–2024 period. GCG is proxied by the number of directors, the number of board commissioners, the number of audit committee members, and institutional ownership, while CSR is measured based on the level of CSR disclosure. Financial performance is measured using Return on Assets (ROA). Data analysis was conducted using multiple linear regression with the assistance of SPSS, preceded by classical assumption tests and hypothesis testing. The results show that, partially, the number of directors, the number of board commissioners, the number of audit committee members, institutional ownership, and CSR disclosure do not have a significant effect on ROA. Simultaneously, GCG and CSR also have no significant effect on financial performance. These findings indicate that variations in financial performance are largely influenced by factors outside the research model. The results suggest that GCG and CSR implementation have not directly translated into improved short-term financial performance among LQ45 companies.
Novi Resnowati, Ependi, Lily Nabila· Ilmu Ekonomi Manajemen dan A...· 0 citations
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