Effect of Corporate Governance Practices on Return on Assets of Deposit Money Banks in Nigeria

Abstract

This study investigates the effect of corporate governance practices on the return on assets (ROA) of listed deposit money banks in Nigeria. Using an ex post facto design, secondary data were drawn from the audited annual reports of 12 banks between 2020 and 2024. Panel regression analysis revealed that audit committee meetings and credit committee intensity exert a positive and statistically significant influence on ROA, underscoring the importance of effective oversight and credit governance in enhancing asset utilization and profitability. Conversely, board size showed a negative but statistically insignificant relationship with ROA, indicating that the mere expansion of boards does not guarantee improved performance. The findings highlight that committee diligence and expertise are more critical than board enlargement in driving profitability. The study recommends that regulators and bank management strengthen audit and credit committee effectiveness to improve governance quality and financial performance.