Publisher: University of Calabar

The Effects of Corporate Governance On The Performance of Commercial Banks In Nigeria

Okoi Innocent Obeten, Sani John, Stephen Ocheni
KEYWORDS: Corporate Governance, Profitability, Banking Sector, Regulatory Authorities

ABSTRACT:

The paper takes a look at the effects of corporate governance on the performance of commercial banks in Nigeria. As a managerial tool for judicious, preservation and prudent management of resources, corporate governance contributes to the economic health of banks in Nigeria. This explains the public interest and debate on corporate issues in Nigeria. The paper therefore concludes in absolute terms that corporate governance does affect banks’ performance and value of the firm. That strong governance standard is important for banks and increased governance quality leads to higher levels of investment as well as greater responsiveness of investment to growth opportunities. However, the paper avowed that substantial part of variability in corporate governance practices of commercial banks is due to interaction of forces from regulatory authorities, capital markets, government policies, environment factors as well as asset quality.

The paper takes a look at the effects of corporate governance on the performance of commercial banks in
Nigeria. As a managerial tool for judicious, preservation and prudent management of resources, corporate
governance contributes to the economic health of banks in Nigeria. This explains the public interest and
debate on corporate issues in Nigeria. The paper therefore concludes in absolute terms that corporate
governance does affect banks’ performance and value of the firm. That strong governance
standard is important for banks and increased governance quality leads to higher levels of
investment as well as greater responsiveness of investment to growth opportunities. However,
the paper avowed that substantial part of variability in corporate governance practices of
commercial banks is due to interaction of forces from regulatory authorities, capital markets,
government policies, environment factors as well as asset quality.


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