Do corporate governance mechanisms impact on commercial banks performance in developing countries? Empirical analysis from Nigeria

2019 IJRSM – Volume 8 Issue 1


Odilu, Austine*
College of Education, Ekiadolor, Benin City, Nigeria (


This study seeks to analyze if corporate governance mechanisms influence the financial performance of Nigerian listed commercial banks in the Nigerian context. The population of the study consists of all the twenty five commercial banks in Nigeria. A sample of fourteen (14) commercial banks was selected and data were collected over the period 2010 to 2017. Inferential statistics consisting of Pooled Regression was used for the data analysis. The results obtained reveal that corporate governance mechanisms exerted significant impact on commercial banks financial performance in Nigeria. Specifically, Board independence and managerial ownership were positive and exert non-significantly impact on the financial performance of commercial banks in Nigeria whereas board size positively and significantly impact financial performance of the commercial banks over the reference period. Board gender diversity and ownership concentration were negative on financial performance of the commercial banks in Nigeria. While board gender diversity was not significant, ownership concentration was. The study recommended that there has to be a designed framework to efficiently and effectively monitor the interaction between corporate governance mechanisms and commercial bank financial performance by regulators and shareholders as this will drastically minimized the tendency for managers to engage in rent seeking behavior.

Keywords: board size; board independence; board gender; managerial ownership; ownership concentration; financial performance



*Corresponding Author