University Links: Home Page | Site Map
Covenant University Repository


AGBA, LOVE UYOYOGHENE and Covenant University, Theses (2017) CEO POWER, RISK GOVERNANCE AND BANK PERFORMANCE IN NIGERIA. Masters thesis, Covenant University.

[img] PDF
Download (205kB)


The study empirically examines the influence of CEO power and risk governance on bank performance in Nigeria. CEO power determinants include CEO tenure, percentage of CEO shareholding, and internally hired CEO and risk governance variables includes capital adequacy ratio, non-performing loan ratio, liquidity ratio and loan-to-total deposit ratio. While the model for estimating bank performance is return on asset (ROA). The study covers four years from 2012 to 2015 while secondary data used were extracted from the firms’ annual reports and finance websites. Using panel data, the random effect regression was employed for the regression analysis. The study also included the random firm effect general least square regression to conduct the hypotheses testing. The descriptive results indicate that 56% of CEO are internally hired in Nigerian banks, CEO holds 1.6% on the average of the ordinary shares of the bank, and risk governance variables (NPLR, LTD, LR and CAR) is within the limits specified by CBN. The findings from the correlation analysis show that CEO power variables have a significant relationship with risk governance variables in the Nigeria banking industry. However, the results from the regression analysis show that despite the adherence of banks to corporate governance regulations by CBN, CEO power and risk governance measures are no adequate determinants of bank performance measured by ROA. The major implication of the study is that CEO power (tenure, percentage of shareholdings, internally hired) and risk governance (NPLR, LTD, LR, CAR) is not a standalone measure to improve the performance of listed banks. Therefore, firms should consider the other measures of CEO power and risk governance as well as other inherent and external factors that may impact on the performance of banks in Nigeria.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 17 Jun 2020 12:12
Last Modified: 17 Jun 2020 12:12

Actions (login required)

View Item View Item