Okoye, Lawrence U. and Evbuomwan, Grace O. and Achugamonu, Bede U. and Isibor, Areghan Akhanolu (2016) IMPACT OF CORPORATE GOVERNANCE ON THE PROFITABILITY OF THE NIGERIAN BANKING SECTOR. ESUT Journal of Accountancy, 7 (1). pp. 281-292.
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Abstract
Corporate governance has, in recent times, raised a great deal of concern due, largely, to massive corporate failures in the domestic and global arena. Governments have in response to rising cases of financial distress taken both pro-active and reactive measures to achieve stability in the sector. However, notwithstanding government interventionist roles, stability of banking operations remains suspect. This study seeks to empirically determine the effect of corporate governance on the profitability of banking sector in Nigeria.Return on equity (ROE) and return on assets (ROA) were adopted as proxies for banking sector profitability while capital adequacy ratio (CAR), liquidity ratio (LQR) and ratio of non-performing loans to total loans (NPL) were adopted as proxies for corporate governance. Inflation rate was introduced as a control variable. Empirical evidence from the study shows significant impact of corporate governance on the profit performance of the Nigerian banking sector. We recommend that the regulatory authorities (CBN, NDIC and SEC) should diligently exercise their oversight functions to ensure strict compliance, by the banking sector,to extant regulations on corporate governance so as to consolidate, or possibly, improve on the gains of the initiative.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Corporate governance, profitability, Nigeria, Banking sector |
| Subjects: | H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Patricia Nwokealisi |
| Date Deposited: | 14 Jun 2017 09:49 |
| Last Modified: | 15 Feb 2019 09:58 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/8197 |
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