Impact of Corporate Governance on the Performance of Selected Banks in Nigeria

The impact of corporate governance on the performance of selected banks in Nigeria has become a wide-reaching truism that the quality of corporate governance makes a significant difference to and has a chief effect on the performance of banks. Effective corporate governance requires a clear understanding of the respective role of the board and of senior management and their relationships with others in the corporate structure.This study aim to examine the relationship that exists between corporate governance and banks performance of selected commercial banks in Nigeria. Using regression analysis of 5 years ranging from 2014 – 2018. The stock performance being the response variable was captured by Market price per share (MPS) while the explanatory variables included Board Size (BS), Corporate Governance Disclosure Index (CGDI), Non-Executive Director (NED) and Number of Female Director (NUM) are the regressors used in achieving this objective. Descriptive analysis was used to ascertain the mean (1.64141; MPS, 2.658831; BS, 2.145323; NED, 1.127043; NUM 0.933143; CGDI) median, Maximum, Minimum. Correlation was carried out and a positive and strong relationship were generated.Post estimation diagnostic test of Hausman test and redundant fixed effect test were adopted in selecting the most appropriate model to capture the impact of corporate governance characteristics on stock performance of banks. The test indicated that random effect is not an appropriate model and non-normality of the variables will not encourage the use of ordinary effect, therefore, in estimating the parsimonious model of the variable, fixed effect will be an appropriate assumption. 86.78% of the stock performance of banks was accounted for by the explanatory variables.The work suggests that efforts should be made to improve corporate governance focus on the stock performance of deposit money banks since the stock performance is a measure of the wealth of shareholders. Also, the Central bank of Nigeria and other relevant authorities should also try to ensure that steps are taken for mandatory and absolute compliance with the code of corporate governance. Also, an effective legal framework should be developed that specifies the rights and obligations of a bank, its directors, shareholders, specific disclosure requirements and provide for effective enforcement of the law. Keywords: Performance, Corporate Governance, Banks, Measure and Shareholders. DOI: 10.7176/RJFA/11-16-12 Publication date:August 31st 202

Determinants of Dividend Policy in Nigerian Manufacturing Firms

Dividend policy is becoming an area of concern to different stakeholders including the researchers in recent time. Although there are existing literatures on Determinants of Dividend Policy in Nigeria, this study wishes to contribute to existing study by viewing determinants of dividend policy with a focus on listed food and beverages and cement firms in Nigeria. Dividend per Share is used as dependent variable while Return on Capital employed, Earnings per Share and Tangible Asset growth rate are used as the independent variables.Panel Data were sourced from annual report and account of the selected five (5) companies to cover a period of eight (8) years(2008 to 2015). Panel least square was employed to estimate the model built for the study. The result shows that Return on Capital employed has no significant relationship with dividend policy; Earnings per Share and Tangible Asset growth rate have significant relationship with dividend policy of firms. Moreso, only Earning per Share out of the three explanatory variables exhibit positive relationship with dividend per share while others have negative relationship. It is strongly recommended that firms should pursue effective dividend policy that will motivate investors to commit more resources in the company, and to also ensure that reasonable proportion of profit is also retained for future growth without detriment to shareholders wealth maximisation. Keywords: dividend policy, returns on capital employed, earnings per share and tangible asset growth rate