BOARD MEETINGS AND PERFORMANCE OF NIGERIAN DEPOSIT MONEY BANKS

Abstract

Corporate governance is a cornerstone of financial stability and performance in the banking sector. Among the mechanisms of corporate governance, the frequency and effectiveness of board meetings play a pivotal role in shaping strategic decisions and ensuring performance. In this context the study empirically investigated Board meetings and Performance of Deposit Money Banks (DMBs) in Nigeria. Performance was measured using return on asset, return on equity and Firm’s market value (Tobin’s Q). This study adopted expost factor research design using the panel model approach. The research population consisted of all 14 quoted deposit money banks in Nigeria. Twelve (12) banks were randomly selected and data collected on the research variables from 2012 to 2022. The data were obtained from the annual reports and accounts of the banks and the Nigerian Exchange Group Fact Book. The collected data were analyzed descriptively using several statistical measures, including the mean, median, maximum, minimum, standard deviation, skewness, and kurtosis. The research models were estimated using panel models (Pooled OLS, Fixed Effect and Random Effect) With Fixed Effect Model (FEM) as the preferred model. The study found that board meetings significantly influence the performance of Deposit Money Banks (DMBs) in Nigeria. At a 5% significance level, board meetings significantly impact Return on Investment (coefficient: 0.150, p-value: 0.011), Return on Equity (coefficient: 0.767, p-value: 0.000), and Tobin’s Q, (coefficient: 0.020, p-value: 0.000). In conclusion the study revealed with substantial statistical evidence the role of board meetings, in influencing the financial performance of Deposit Money Banks (DMBs) in Nigeria highlighting the importance of regular and effective board meetings in fostering strategic decision-making and robust oversight, ultimately contributing to the financial stability and success of banks in Nigeria. Based on the findings, the study recommends that banks should increase the frequency of board meetings to ensure continuous oversight and swift decision-making. Regular meetings can help in promptly addressing emerging issues and seizing new opportunities