IMPACT OF BOARD CHARACTERISTICS ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA
Abstract
This study aimed at examining the impact of corporate governance mechanism on financial performance of Deposit money Banks in Nigeria. The study specifically assess the relationship between board meeting; board composition; board diversity; board independence and financial performance of Deposit money banks in Nigeria. Secondary data was adopted through the use of annual report of banks. The study reveal that Board size has a t-value of 0.648 and Beta value of 0.114 with a significance value of 0.0p50 has positively, weakly and significantly impacted on the financial performance of listed Deposit Money Banks in Nigeria. Board Independence has a t-value of -1.293 and Beta value of -.227 with a significance value of 0.027. This signifies that board independence has negative, but strongly and significantly impacted on the financial performance of listed Deposit Money Banks in Nigeria. Board expertise has a t-value of 0.446 and Beta value of 0.079 with a significance value of 0.659. This signifies that board expertise has positive, strong and insignificant impact on the financial performance of listed Deposit Money Banks in Nigeria. The study recommended that thecompositionoftheboard independence whichisveryvitalshouldbestrictlyfollowed, foritsinfluencecorporategovernancetobringaboutbestpracticesandideas concerninginternal control and risk managementprocesses. Management of deposit money banks in Nigeria should increase the number of financial expertise on Board to a certain average or number as they have skills, expertise, and experience and would like to protect their integrity, reputation and professional competence.; the number of board composition should be reduced to an average level in order to overcome the negative effect on performance; Banks management should take advantage of enhanced to fill their boards and engage more women at the board level.
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