Vol 6, No 4 (2018)
Does Board Size Spur Bank Performance in Nigeria? Evidence from Panel Data Analysis
Dosunmu Adebukola Ibitamuno, Okey Onuchuku, Alwell Nteegah
Abstract
This paper examines how board size affects the performance of Deposit Money Banks (DMBs) in Nigeria. To achieve the objectives of the study, data on return on equity (ROE) board size, executive and non-executive board members and interest rate margin (lending rate less deposit rate) of 15 DMBs were sourced from the NDIC and CBN records and analyzed using panel approach. The result of the analysis revealed that board size has negative implication on the performance of banks in Nigeria. This implies that banks are likely to perform better with reduced board size. Based on this finding, the paper concludes that, there is no significant relationship between board size and the performance of banks in Nigeria. It also suggests the reduction in board size and banks adherence to prudential guideline by the regulatory agencies as ways of improving their performance in Nigeria.
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Keywords
Return on equity; Board size; Interest rate margin.
Publication information
Volume 6, Issue 4
Year of Publication: 2018
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Adebukola Ibitamuno, D., Onuchuku, O., Nteegah, A.: Does Board Size Spur Bank Performance in Nigeria? Evidence from Panel Data Analysis. Journal of Applied Economics and Business, Vol 6, No. 4, 5-15. (2018)