Effect of Corporate Governance on the Performance of Deposit Money Banks in South-East Nigeria

The study evaluated the effect of corporate governance on the performance of deposit money banks in South-East Nigeria. The specific objectives were to examine the effect of board size on profit and to assess the effect of board independence on the operational efficiency of deposit money banks in South-East Nigeria. The study adopted a descriptive survey research design. The primary source of data was the administration of questionnaires. The population of the study consisted of one thousand and eighty-six (1,086) staff. A sample size of 284 was determined using the Freund and Williams statistical formula. Out of the 284 questionnaires distributed, two hundred and forty-five (245) were returned and properly completed. Data were presented and analyzed using mean scores. The hypotheses were tested using the Z-test statistical tool. The findings indicated that board size had a significant positive effect on profit (Z = 9.184, p = .05). Board independence also had a significant positive effect on the operational efficiency of deposit money banks in South-East Nigeria (Z = 9.248, p = .05). The study concluded that board size and board independence have significant positive effects on the profit and operational efficiency of deposit money banks in South-East Nigeria. Corporate governance plays a critical role in enhancing the performance of deposit money banks in South-East Nigeria. The study recommended, among other measures, that deposit money banks in South-East Nigeria should maintain an optimal board size that balances diversity of expertise with effective decision-making, as excessively large or very small boards may negatively affect profitability