Journal of Economics and Management Volume 18, No. 1 March, 2022

Corporate Governance and Firm Value of Nigerian Listed Deposit Money Banks

Aderemi Olalere Adebayo

Department of Accounting, Osun State University, Osogbo, Nigeria

Adebayo Olagunju

Department of Accounting, Osun State University, Osogbo, Nigeria

Jimoh Ibrahim

Department of Accounting, Osun State University, Osogbo, Nigeria

Abstract

This study investigated how the corporate governance factors influenced the firm value of 12 listed Nigerian Banks on NGX within a range of 2011 and 2019 with 108 observations. Data were generated from a Certified Annual Financial Statement of sampled study. The study used descriptive, Hausman test, multiple regression analysis of random effect, and diagnostic tests such Heteroskedasticity and Autocorrelation to validate the data. The overall result indicated that there was a significant influence of corporate governance on the firm value. Findings further revealed that there was a negative significant relationship between board size, board composition, firm size, and firm value of sampled banks in Nigeria as the P-values < 0.05 level of significance whereas the frequency of board meeting had a negative insignificant influence on firm value and leverage had a positive and significant influence on firm value. Whereas the women on board had a positive but non-significant influence on the firm value of the selected Nigerian banks as P-value > 0.05. Conclusively, the firm value of Nigerian banks was influenced by the practice of good corporate governance. The study suggested that the board of directors’ size should be kept with adequate size for the operation of a banking system to be effectively and efficiently managed.

Keywords： Corporate Governance, Firm Value, Nigerian Banks, The Board Size, Gender Diversity.

JEL Classifications：M140, L21, G34.

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