The issue of corporate governance and financial performance has always been an essential and critical element of the banking sector in Nigeria. Good corporate governance practices are regarded as necessary in reducing the risk for investors and improving performance. Precisely, this study investigates the relationship between corporate governance inthe board of directors and the financial performance of Nigerian banks. Three board attributes (board independence, board meetings and board gender) were used as proxies of the independent variables while ROA was chosen as a measure of performance.Furthermore, the research made use of secondary data obtained from the annual reports of fifteen (15) banks listed in the Nigeria Stock Exchange for the year 2013 to 2015. This study utiliseda panel data method on 15 banks with 45 firm-year observations. The random effect model was used to examine the effect of the predictors on financial performance. The results indicated that the relationship between board independence and ROA is negatively insignificant. Board meeting and ROA were found to be negatively significant. However, the relationship between board genders, board size and ROA were negatively insignificant. While the relationship between firm size and ROA is positively significant. For bank age and ROA, the relationship was found as negatively significant. This study provides a guide for regulators and the Nigerian banking industry.
Volume 12 | Issue 1