CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF BANKS WITH INTERNATIONAL AUTHORIZATION
Keywords:
Board Size, Board Gender Diversity, Financial PerformanceAbstract
Many businesses continue grappling with the long-term financial impacts of COVID-19, including disrupted supply chains, changed consumer behavior, and altered business models, as a result shareholder’s are more conscious and interested to invest more in businesses that are able to manage and surpass the struggle. Given this, the purpose of this study is to evaluate how corporate governance affects the financial performance of banks that have received international authorization. Using secondary data gathered from the financial statements of eight (8) banks with international authorization listed on the Nigeria Exchange Group Market, the study used an ex-post facto research design to investigate the matter. Pooled ordinary least square (OLS) regression and initial pre-regression analysis, including descriptive statistics, a correlation matrix, and a normality test, were used to examine the gathered data. The study revealed that board size and CEO tenure has a significant positive effect on the financial performance of listed banks with international authorization in Nigeria, while board gender diversity has an insignificant negative effect on the financial performance of internationally licensed banks in Nigeria. The study concluded that board size and CEO tenure tend to increase the financial performance of listed banks with international authorization in Nigeria, while board gender diversity appears to decrease the financial performance of internationally licensed banks in Nigeria. This study recommends that policymakers come up with a framework for board size that will fit bank operations, especially those with international authorization, and also advocates that an internal remedy should be considered by the CEO when confronted with declining performance.
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