Corporate Governance and Performance in Nigeria Banking Industry

Abstract

This paper presents the findings of the investigation of the relationship between corporate governance variables and the corporate performance of Nigerian banks. Profit before Tax and Earnings per Share were used to represent corporate performance, while corporate governance variables examined are: the size of the Board of Directors, Independence of the Audit Committee, Independence of the Board of Directors, and the pay of the Chief Executive Officer. Data for the study was collected from the 2009 annual reports and accounts of a sample of thirteen out of a population of twenty-two banks in Nigerian banks. The data were analyzed with a multiple regression model with the use of SPSS software. The results of regression analyses show that the size of the Board of Directors is not a significant determinant of the corporate performance of Nigerian Banks. On the other hand, the Independence of the Audit Committee, the Independence of the Board of Directors, and the Pay of the Chief Executive Officer were found to be significant determinants of the corporate performance of Nigerian Banks.