Corporate Governance and Performance of Deposit Money Banks in Lagos State
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Date
2025-12
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Lead City University Ibadan
Abstract
This study examined the effect of corporate governance on performance of selected Deposit Money Banks (DMBs) in Lagos State, Nigeria, with specific objectives to determine the effects of corporate governance dimensions (risk management, ethical practice, and transparency) on profitability, market share, and bank efficiency of selected DMBs. The study addressed the gap in literature regarding how corporate governance dimensions affect
banks' profitability, market share, and efficiency in the post-COVID-19 pandemic and Russia-Ukraine war era, and was anchored on Agency Theory and Stakeholder Theory. A cross-sectional survey research design was adopted with a population of 354 management staff from selected DMBs (Fidelity Bank, Wema Bank, First City Monument Bank, and Polaris Bank) in Lagos State, Nigeria. A sample size of 240 management staff was determined using Raosoft online calculator and stratified random sampling technique, with 244 usable questionnaires returned, representing an 88% response rate. Data were collected using a validated questionnaire with Cronbach's alpha reliability coefficients ranging from 0.72 to 0.87, and analysed using descriptive statistics and multiple regression analysis. Corporate governance had a positive and significant effect on performance (R² = 0.452, F(1,277) = 228.570, p = 0.000), with dimensions showing significant effects on profitability (Adj R² = 0.485, F(3,275) = 88.317, p = 0.016), market share (Adj R² = 0.469, F(3,275) = 82.902, p = 0.000), and bank efficiency (Adj R² = 0.563, F(3,275) = 120.383, p = 0.000). The study concluded that corporate governance significantly affects performance of selected DMBs in Lagos State, Nigeria, with transparency emerging as the most influential dimension across all performance measures. The study recommended that management should strengthen corporate governance mechanisms, particularly risk management and ethical practices, to enhance organizational performance and ensure sustainable competitive
advantage.
Keywords: Corporate Governance, Bank Performance, Risk Management, Ethical Practice, Transparency
Word Count: 283
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Keywords
Corporate Governance, Bank Performance, Risk Management, Ethical Practice, Transparency
Citation
Kate Turabian