FIRM SIZSE AS A MODERATOR TO CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study investigated the relationship between firms’ size as a moderator to corporate governance and financial performance of deposit money banks in Nigeria.  The crises rocking the financial institutions now and then necessitated this study. The sample size for the study consisted of 14 quoted deposit banks in Nigeria with one hundred and twelve (112) staff that fell under the categorization of our study. The study used both Primary and secondary data collection. The primary data on corporate governance and financial performance played the main role and were collected from respondents using personal interview and questionnaire instruments found to be reliable with Cronbach Alpha and was above 0.7 coefficients. While the secondary date was collected from the bank’s annual report and accounts through the Nigerian Stock Exchange (NSE) and played a supportive role to the primary data. Data were analyzed using descriptive and Pearson correlation coefficient statistical tools with the aid of statistical package for social sciences version 21.0. The results also showed that firm size moderate the relationship between corporate governance and financial performance.  Based on the findings, it was concluded that corporate governance significantly impacts on financial performance of the deposit money banks. Therefore, the study recommends that there should be statutory training and re training of banks' management team to inculcate in them good corporate governance practices. The regulatory body should set up policy which states clearly practices that should be applied in banking sector in order to achieve the banks financial objective. Finally, the effort to build strong governance among these deposit money banks must be in line with strengthening the board of director’s composition, managerial competency and efficiency.