Corporate Governance and Efficiency of Deposit Money Banks in Nigeria

Abstract

This study investigates the effect of corporate governance on the efficiency of deposit money banks in Nigeria usingex-post facto research design. The study covers 7 years from 2013 to 2019. The population comprises the21quoted deposit money banks in Nigeria out of which 8 were selected as the sample size using purposive sampling method. Data was collected from the financial statements of the banks and descriptive statistics; correlation and panel regression were used for the analysis. A non-parametric approach, Data Envelopment Analysis was also used to examine the efficiency of the banks. The findings showed that both board size and board compositions have positive and significant effect on the efficiency of the quoted deposit money banks in Nigeria. The study therefore recommended that the quoted deposit money banks should continue to comply with the regulated board size and monitor their board compositions regularly especially the board remuneration committee, management committee and audit committee for continuous improvement of their efficiency.