Organizational Governance and Commercial Viability of Deposit Money Banks in Nigeria

This paper investigated the influence of organizational governance mechanisms on commercial viability, specifically measured by Net Profit Margin (NPM), within the context of Nigerian Deposit Money Banks (DMBs). Utilizing an ex post facto research design and secondary data from 17 sampled DMBs over a ten-year period (2013–2022), the research employed panel regression analysis to test the relationships between NPM and key governance variables: executive compensation (EXCOM), board size (BSZ), board diversity (BDV), and the separation of CEO and Chair roles (CEOSEP).The findings from the Random-Effects model indicate that the governance variables collectively possess significant explanatory power (R 2 =0.6543). Crucially, EXCOM, BDV, and CEOSEP were found to have a positive and statistically significant influence on NPM (p