Authors: Aruna Ishola Mamidu, 2Ebenezer Adedayo Adepoju, Henry Kehinde Fasua
Abstract: This study examines the effect of corporate governance disclosures on the financial performance of listed Deposit Money Banks (DMBs) in Nigeria. The specific objectives were to assess the relationship between board structure, audit committee independence, and ownership structure on financial performance, measured by Return on Assets (ROA). The study adopted an ex-post facto research design and utilized secondary data obtained from nine (9) listed banks on the Nigerian Exchange Group (NGX) covering the period 2013–2023. Data were analyzed using the Panel EGLS (Random Effects) regression model after conducting diagnostic tests, including correlation and unit root analyses. The empirical findings revealed that board structure (β = 0.3695; p = 0.0042) exerts a positive and significant influence on financial performance, implying that well-structured and moderately sized boards enhance decision-making efficiency and profitability. Conversely, audit committee independence (β = –0.5076; p = 0.0004) showed a negative and significant effect on ROA, suggesting that excessive independence without corresponding expertise may weaken oversight effectiveness. Similarly, ownership structure (β = –0.8229; p = 0.0163) exhibited a negative and significant relationship with ROA, indicating that concentrated ownership may reduce transparency and accountability, thereby hindering performance. The model recorded an R² of 0.6633 and an F-statistic of 12.1616 (p < 0.01), confirming overall model significance. The study concludes that sound corporate governance practices particularly balanced board composition, competent audit committees, and equitable ownership structures are vital for improving the profitability and sustainability of Nigerian DMBs. It recommends that regulatory authorities such as the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and Financial Reporting Council of Nigeria (FRCN) should strengthen governance frameworks by ensuring competency-based board appointments, enhancing audit committee technical capacity, and promoting broader ownership participation to foster transparency, accountability, and better financial outcomes in the banking sector.
