Abstract

Effective corporate governance is widely regarded as a cornerstone of financial stability and performance, particularly in the banking sector. This study investigates the impact of corporate governance mechanisms on the financial performance of listed commercial banks in Nigeria. Using a panel dataset of 15 banks over a 10-year period (2013-2022), we examine the relationship between board characteristics (board size, board independence, and CEO duality) and firm performance, measured by Return on Assets (ROA) and Tobin's Q. The study employs the Generalized Method of Moments (GMM) to control for potential endogeneity. The results indicate that board independence is positively and significantly associated with financial performance, while CEO duality has a negative impact. Board size was found to have an insignificant relationship with performance. These findings have important implications for regulatory bodies and bank boards, highlighting the need for strengthening corporate governance practices to enhance shareholder value and ensure the soundness of the financial system.

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