Effect of Corporate Governance on Financial Performance of Listed Commercial Banks in Nigeria

Abstract Corporate governance plays a critical role in shaping organisational accountability, transparency, and decision-making. However, despite widespread recognition of its importance, the relationship between corporate governance practices and financial performance remains a subject of significant debate and ambiguity in both academic and practical contexts. The study examined the effect of corporate governance on financial performance of listed financial service firms in Nigeria from 2012 to 2023. In examining the study assessed the effect of board size, board independence, board meetings, board gender diversity and board accounting expertise on the return on asset of listed commercial banks in Nigeria. The study found that board size has a significant negative effect on ROA. Similarly, board gender diversity has a significant negative effect on ROA. In contrast, board independence, board meetings and firm size have insignificant effect on ROA of listed banks in Nigeria. Additionally, board accounting expertise has significant positive effect on return on asset of listed commercial banks in Nigeria. The study concludes that larger size does not increase performance of banks. Also, increase women directors on the board does not translate to increased performance. Based on the findings, the study recommends that Regulatory bodies such as Central bank of Nigeria should enforce minimum requirements for accounting expertise on bank boards. For instance, a minimum of 50% of directors should possess qualifications or significant experience in banking, finance, or accounting.