CORPORATE GOVERNANCE AND ORGANIZATIONAL EFFECTIVENESS OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

Mohammed Isa Kida; OGWUCHE, Iduh Peter; IGOMU, Darisu Mathias

Authors

Mohammed Isa Kida Federal University of Lafia
OGWUCHE, Iduh Peter Kwararafa University, Wukari
IGOMU, Darisu Mathias Federal University, Wukari

Keywords:

Corporate Governance, Organisational Effectiveness, independence, Board size and Board Composition

Abstract

This study examines the relationship between corporate governance (board size and board composition) and organizational effectiveness of selected listed deposit money Banks in Nigeria for the period 2006-2017. Secondary data were extracted from the annual reports of five (5) money deposit banks that form the sample of the study and analyzed using the panel multiple regression analysis. The result revealed that board size has a negative and significant association with organizational effectiveness (proxy by ROA) of the sampled banks during the study period. The study also revealed that board composition had a significant and positive association with organizational effectiveness. The study therefore recommended that banks should have adequate board size to the scale and complexity of the company’s operations and be composed in such a way as to ensure diversity of experience without compromising independence, compatibility, integrity and availability of members to attend meetings.

Author Biographies

Mohammed Isa Kida, Federal University of Lafia

Department of Economics, Federal University of Lafia, Nasarawa State, Nigeria.

OGWUCHE, Iduh Peter, Kwararafa University, Wukari

Department of Business Administration, Kwararafa University, Wukari, Taraba State, Nigeria.

IGOMU, Darisu Mathias, Federal University, Wukari

Department of Business Administration, Federal University, Wukari, Taraba State, Nigeria.