Corporate Governance and Firm Financial Performance: Do Ownership and Board Size Matter?

Stephen Oluwafemi Adeusi, Niyi Israel Akeke, Foluso Olugbenga Aribaba, Obawale Simeon Adebisi


Using a sample of 10 selected banks annual reports covering 2005-2010, this study examines the relationship between
corporate governance and performance in Nigeria banking sector. Based on the econometric model, the result indicates that
improved performance of the banking sector is not dependent on increasing the number of executive directors and board
composition. It shows further that when there are more external board members, performance of banks tends to be worse. The
study concludes a need for increase in board size and decrease in board composition as measured by the ratio of outside
directors to the total number of directors in order to increase the bank performance.

DOI: 10.5901/ajis.2013.v2n3p251

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This work is licensed under Creative Commons Attribution 3.0 License.

Academic Journal of Interdisciplinary Studies ISSN 2281 3993(Print) ISSN 2281-4612(Online)

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