Effect of Board Size on Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract

This study examines the effect of board size on financial performance of listed deposit money banking Nigeria. The expofacto research design was adopted with reliance on secondary data from annual report of listed banks. The purposive sampling techniques was employed in selecting the 10 banks out of 15 deposit money banks in Nigeria for 2011-2020 financial year. To carry out this objective, panel regression estimation method was used, and data was analyzed using the E-views 10 statistical tool. The findings show that board size has negative significant effect on return on asset. The study concluded that board size has a negative impact on financial performance signifying that an increase in board size decreases financial performance of listed deposit money banks. It is therefore recommended that corporate governance should not emphasize only on the board size, as it is negatively associated to return on asset of deposit money banks. Also, more measures should be put in place to ensure mandatory compliance with the code of corporate governance as issued by the Central Bank of Nigeria.