BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

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Published: 2025-07-15
DOI: https://doi.org/10.46281/q8jz8e82
Keywords:
Board Characteristics, Financial Performance, Deposit Money Banks, Returns on Equity

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Akinlolu Adekunle Akinwumi
Accounting Department, Nile University of Nigeria, Abuja, Nigeria
https://orcid.org/0009-0000-1948-244X
Lucky Onmonya
Accounting Department, Nile University of Nigeria, Abuja, Nigeria
https://orcid.org/0000-0003-1081-270X

Abstract

While global literature has established that board characteristics can influence firm performance, empirical evidence in the context of emerging markets like Nigeria remains inconclusive and often contradictory. This study examines the influence of some specific board characteristics on the financial performance of listed deposit money banks (DMBs) in Nigeria, incorporating audit quality as a control variable. The study is underpinned by the resource dependence theory, owing to the relationship between board characteristics and returns on equity which the study uses to proxy financial performance. Utilizing secondary data from thirteen listed deposit money banks in Nigeria, covering 2014 to 2023, the study employs a robust pooled regression for data analysis. The findings indicate that both board size and board independence exert a significant positive influence on the financial performance of Nigerian deposit money banks. Additionally, audit quality is found to have a significant positive effect on financial performance of deposit money banks in Nigeria. However, gender diversity does not have any effect on the financial performance of these banks. The findings of this study suggest that the ratio of independent directors to the total board size should be enhanced as a policy guideline to be instituted by the Central Bank of Nigeria. The findings also suggest that the regulator should mandate adequate board sizes to be maintained by banks. Furthermore, the findings suggest urging the shareholders to mandate a higher number of independent directors on boards during their annual general meetings.


JEL Classification Codes: G21, G34, O16.

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Article Details

Issue

Vol. 16 No. 1 (2025): International Journal of Accounting & Finance Review

Section

Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author Biographies

Akinlolu Adekunle Akinwumi , Accounting Department, Nile University of Nigeria, Abuja, Nigeria

Akinlolu Adekunle Akinwumi is a PhD Accounting student at Nile University of Nigeria. He is an International Financial Reporting Standards Specialist (IFRSS), a Fellow Chartered Accountant (FCA) - a Fellow of the Institute of Chartered Accountants of Nigeria. Mr. Akinwumi holds a Master’s degree in Business Administration (MBA), a Master of Science (MSc) in Accounting and Finance, and a Bachelor of Science (BSc) in Accounting from Obafemi Awolowo University, Ile-Ife, Nigeria. He also holds a Higher National Diploma (HND) in Banking and Finance, as well as a National Diploma (ND) in Financial Studies. Mr. Akinwumi is an astute researcher, a highly motivated and forward-thinking finance and strategic business development professional, renowned for his people-centric approach to achieving critical corporate objectives. With a career spanning over two decades, he brings extensive experience across multiple sectors, including Healthcare, Information ICT, Banking, and Insurance. Mr. Akinwumi is the Head of Financial Operations at the African Medical Centre of Excellence (AMCE) in Abuja, Nigeria. Prior to joining AMCE, Mr. Akinwumi served as the Chief Financial Officer and Head of Managed Care at Nisa Medical Group Limited, where he led the finance teams. He also held the position of Group Head/Head of Finance and Accounts at Integrated Health Care Limited, a National Health Maintenance Organization, where he provided strategic leadership for both the Administrative and the Finance & Accounts Departments for nearly a decade. Mr. Akinwumi possesses deep expertise in financial and administrative policy, with a proven track record in policy formulation, development, and execution. He has successfully managed the operations of various projects and programmes, demonstrating consistent excellence in leadership and results delivery.

Lucky Onmonya , Accounting Department, Nile University of Nigeria, Abuja, Nigeria

Dr. Onmonya Lucky is a Senior Lecturer at Nile University of Nigeria, with a comprehensive academic and professional background in Accounting and Finance. He holds a Ph.D. in Accounting & Finance from the University of Jos, an M.Sc. in Development Studies from Benue State University, an M.Sc. in Finance from the University of Calabar, and an MBA from Bayero University. Additionally, he earned a Postgraduate Diploma in Development Administration from Obafemi Awolowo University, specializing in Development Finance and Project Monitoring and Evaluation Management. Dr. Onmonya also holds a B.Sc. in Accounting from Bayero University and has completed a Certificate in Computer Operation from the University of Port Harcourt. Dr. Onmonya is a Fellow of the Institute of Development Finance and Project Management (FDFPM), the Institute of Development Administration of Nigeria (FDA), and a member of the Nigerian Institute of Management (AMNIM), the Association of National Accountants of Nigeria (CNA), and the Institute of Chartered Accountants of Nigeria. His interests span across Business Development, Result-Based Monitoring and Evaluation, Socio-economic Impact Assessment of Projects, Project Management, Feasibility Study and Business Plan Preparation, Development Finance, and Entrepreneurship Development. He is a seasoned professional accountant with 25 years of progressive experience. Dr. Onmonya has held various significant roles, including Executive Director of the Institute of Development Finance and Project Management (2016-2022), Business Development Service Provider for the Bank of Industry, and Program Director for the Central Bank of Nigeria’s (CBN) Entrepreneurship Development Centre, North Central Zone (2016-2018). He has also served as a Monitoring and Evaluation Specialist and Advisor for several organizations, including the Africa Community Bridge Foundation, IDAN/USAID MEMS, and the Nigeria Building and Road Research Institute. His extensive career also includes positions such as Accountant at NASCO Group of Company, Jos, Principal Partner in Audit and Tax at Jonah Arimuna and Co Chartered Accountants, and Sector Specialist in Impact Evaluation at Nexier Capital Ltd. In academia, Dr. Onmonya has taught accounting courses at institutions such as Imo State University, Kano Study Centre, the Institute of Development Administration of Nigeria (moderated by the University of Ibadan DLC), and the University of Jos. He has published numerous peer-reviewed articles in both international and local journals and is the author of the book *Entrepreneurship and New Venture Management*.

How to Cite

Akinwumi , A. A. ., & Onmonya , L. . (2025). BOARD CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. International Journal of Accounting & Finance Review, 16(1), 24-32. https://doi.org/10.46281/q8jz8e82
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