IMASUEN, Osasere Festus PhD

Department of Business Administration and Management, School of Business, Edo State Polytechnic,

DOI : https://doi.org/10.47191/ijsshr/v8-i1-71

Google Scholar Download Pdf
ABSTRACT

The study examined corporate governance mechanism and non performing loans of publicly listed deposit money banks in Nigeria ... Four governance mechanisms were used such as board size, gender diversity, independence and audit committee. This study used quantitative designvia across sectional and expost facto design and secondary data formed the basis of data collection. Sample of twelve (12) deposit money banks with international and national authorization and publicly listed on the floor of the Nigerian Exchang e Group were employed and data obtained were analyzed using descriptive and inferential ( fixed and random effects panel regression model) statistical techniques . The result revealed that corporate governance mechanisms (board size, gender diversity, independence and audit committee) have negative insignificant impacts on non performing loans . It is recommends among others that there should be more gender diversity in the composition of board members because women by nature are more meticulous at work which is ineeded to improve non performing loans.

KEYWORDS:

Audit committee Board size; corporate governance Deposit money banks Non performing loans

JEL Classifications:

G21; M10; M40

REFERENCES
1) Adegboye, A., Ojeka, S. & Adegboye, K (2020) Corporate governance structure, bank externalities and sensitivity of non-performing loans in Nigeria, Cogent Economics & Finance, 8(1)1-21. DOI: 10.1080/23322039.2020.1816611

2) Angahar, P.A. & Mejabi, S.K. (2014). The impact of corporate governance variables on non-performing loans of Nigerian deposit money banks. Asian Economic and Financial Review, 4(11)153111544 a. http://www.aessweb.com/journals/5002

3) Aroghene, K.G, & Ikeora, J.J.E.(2022). Effect of non-performing loans (NPLs), capital adequacy (ca) and corporate governance (CG) on bank stability in Nigeria. Finance & Accounting Research Journal, 4(4), 180-192. DOI: 10.51594/farj.v4i4.400.

4) Balagobei, S. (2019). Corporate governance and non - performing loans: evidence from listed banks in Sri Lanka. International Journal of Accounting & Business Finance 5(1) 72-85: https://ssrn.com/abstract=3510189

5) Belhaj, S., & Mateus, C. (2016). Corporate governance impact on bank performance evidence from Europe. Corporate Ownership & Control, 13(4-4), 583-597. https://doi.org/10.22495/cocv13i4c4p8

6) Central Bank of Nigeria (2022). List of deposit money banks as at December 31. Online: https://www.cbn.gov.ng/out/2021/fprd/deposit%20money%20banks%20as%20at%20december%2031,%202022.pdf.

7) Islam, M. N. (2020). The impact of board composition and activity on non-performing loans. 2020 Awards for Excellence in Student Research and Creative Activity. 7. Online: https://thekeep.eiu.edu/lib_awards_2020_docs/7

8) Jensen, M.C. (1993). The modern industrial-revolution, exit and the failure of internal control systems. Journal of Fiance,48(3) 831-880. http://dx.doi.org/10.2139/ssrn.93988

9) Laelatul ,M. F. & Indra, S. (2024). The influence of good corporate governance and non- performing loans on company value with profitability as an intervening variable and company size as a control variable (case study kbmi 3 and 4 2017-2022 period). International Journal of Management Studies and Social Science Research 6(1),158-172. https://doi.org/10.56293/IJMSSSR.2024.4815.

10) Lipton, M. & Lorsch, J.W. (1992). A modest proposal for improved corporate governance. Business Lawyer 48(1)59-77. https://www.jstor.org/stable/40687360

11) Obi, C. C. (2016). Corporate governance and bank performance in Nigeria. A Dissertation for the award of master of science (M.Sc.) degree in Banking and Finance Delta State University, Asaba Campus.

12) Poudel, R.P. & Hovey, M.T. (2012). Corporate governance and efficiency in Nepalese commercial banks. http://dx.doi.org/10.2139/ssrn.2163250

13) Pucheta-Martinez, M.C. & Bel-Oms, (2016). The board of directors and dividend policy: the effect of gender diversity. Industrial and Corporate Change. 25(3),523–547. https://doi.org/10.1093/icc/dtv040.

14) Ye, J., Deng, Y., Liu, S.H., & Szewczyk, X. C. (2019). Does board gender diversity increase dividend payouts? Analysis of global evidence. Journal of Corporate Finance, 58 (C)1-26. https://doi.org/10.1016/j.jcorpfin.2019.04.002

15) Zabri, S. M., Ahmad, K., & Wah, K. K. (2016). Corporate governance practices and firm performance: Evidence from top 100 public listed companies in Malaysia. Procedia Economics and Finance, 35, 287-296. a. https://doi.org/10.1016/S2212-5671(16)00036-8

Volume 08 Issue 01 January 2025