Title:
Corporate Governance Mechanisms and Shareholders’ Earnings: The Nigerian Experience

Authors:
Momah, N. S., Egwakhe, A. J., Akande, F. I, Nigeria

Abstract:

In Nigeria, the shareholders' earnings within deposit money banks, when compared to those in developed and emerging economies, can be considered low and could be attributed to the high records of corporate governance scandals among the banks. The paper examined corporate governance mechanisms on shareholders’ earnings (economic value added and earnings per share) from 2006-2021. The sample comprised thirteen deposit money banks selected along their market capitalization in December 2021. Panel regression analysis revealed that corporate governance mechanisms had individual positive but insignificant effect on economic value added of the deposit money banks in Nigeria (Adj. R2 = 0.0120, (F (4, 162) = 1.50, p > 0.05). Also that the proxies of corporate governance mechanisms showed significant effect on earnings per share. Thus, deposit money banks should strengthen their board of directors by along risk committee, independent non-executive directors and diversity to ensure effective participation with inclusive decision-making.

DOI: https://doi.org/10.51505/IJEBMR.2023.7607