Dr Nathaniel Okodugha1
Tonye Obinna-Igbokwe2
Dr Kurtz Law3
Dr Musa Dauda4
1,3Anglia Ruskin University, United Kingdom
2University of Bolton, United Kingdom
4Covenant University, Nigeria
Abstract
The purpose of the study was to determine how corporate governance affected the Nigerian banking system’s performance. In particular, the study looked at how board size, board composition, and audit committee performance affected banks and how these factors affected their profit performance. The ordinary least square (OLS) method was used as an analytical tool in the investigation. According to the study, the profit performance of Access Bank and Guaranty Trust Bank is positively impacted by the size of their boards, whereas United Bank for Africa’s profit performance is negatively impacted by the size of its board. Additionally, the study found that the profit performance of the banks utilised as a case study was positively impacted by the makeup of the boards of Access Bank, Guaranty Trust Bank, and United Bank for Africa. Finally, the study discovered that the audit committees for Access Bank and United Bank for Africa had a significant and positive impact on the banks’ profit performance, whereas the audit committees had an adverse influence on the profit performance of Guaranty Based on the results, the study suggests that Trust Bank would benefit from reducing the size of its board, as this would likely lower agency costs, improve efficiency, and increase profitability. Nonetheless, banks must keep enforcing corporate governance regulations. Keeping a balanced board size and enough independent non-executive directors to ensure board independence are notable examples. The banks’ overhead costs increase with the size of the board.
Keywords: Corporate governance, Board Size, Audit Committee, Board Composition, Profit performance, Commercial banks
