Effects of corporate governance on the financial performance of commercial banks in
Nigeria from 2007-2016

Efiong Eme Joel
Joshua, Udemeobong Monday
Department of Accounting, University of Calabar, Calabar- Nigeria.

This study examines the effect of corporate governance on financial performance of commercial bank
in Nigeria. Data where obtain from secondary sources form the commercial bank for ten years period
from 2007- 20016. Data where presented using tables and analyzed using ordinary least square
regressions analysis (OLS). The corporate governance mechanisms of board size, board composition
and audit committee were used. Moreover, ROA was used as the performance measure. The findings
of this study revealed that the board sized has a positive and significant relationship with return on
asset. The study therefore, concludes that board size and audit committee is good predictor of
performance as measured by return on asset (ROA), though the board size was negatively related to
performance, it had a significant relationship. It was recommended that the size of the board
(membership) of banks should be increased and should comprise a mix of executives and non-
executives to serve on the board of banks. Additionally, the audit committee of banks should meet
more often so as to enable the review the financial reports of the banks and make appropriate
recommendations that will help to improve the performance of the banks.



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