IMPACT OF CORPORATE GOVERNANCE ON THE PERFORMANCE OF BANKS LISTED ON NIGERIAN STOCK EXCHANGE

The objective of this paper is to determine the extent to which corporate governance impacts on organizational performance of listed deposit money banks in Nigeria. Secondary data from affected deposit money banks were collected and analyzed. The major finding from the analysis on the first hypothesis is that board size has significant relationship with the performance of banks in Nigeria. The test of hypothesis two reveals that board composition has significant relationship with the performance of banks in Nigeria. The correlation coefficient between the independent variable (board composition) and the dependent variable (return on equity) is 0.2557 this connotes that there exists a low positive relationship the independent variable (board composition) and the dependent variable (return on equity) which is statistically significant at 0.05 or 5%. This means that the more the number of the board composition, the higher the financial performance of the bank in terms of return on equity (ROE).Lastly, the test of hypothesis three reveals that audit committee has significant relationship with the performance of banks in Nigeria. The correlation coefficient between the independent variable (audit committee) and the dependent variable (return on equity) is 0.248 this connotes that there exists a low positive relationship the independent variable (audit committee) and the dependent variable (return on equity) which is statistically significant at 0.05 or 5%. This means that the more the number of the audit committee, the better the financial performance of the bank in terms of return on equity (ROE)