Corporate Governance Characteristics and Non-Financial Performance of Listed Financial Institutions in Nigeria

Abstract

This study explores the relationship between corporate governance and the non-financial performance of listed financial institutions in Nigeria. It specifically investigates how corporate governance practices in banks and insurance companies listed on Nigeria’s exchange group influence their non-financial performance, using historical financial data from 2019 to 2023. The effects of board size, board diversity, audit committee size and frequency of board meetings on growth in customers deposit, complaints resolution rate and growth in training and development of listed financial institutions in Nigeria were examined. The study collected data from the annual reports of 30 financial institutions comprising 13 deposit money banks and 17 insurance companies. The study employed a general least squares (GLS) multiple regression analysis to analyse the panel data. The findings reveal no significant correlation between corporate governance and non-financial performance, suggesting that other factors—such as the quality of board interactions or the effectiveness of information-sharing processes—may play a more critical role in driving non-financial performance than the frequency board meetings, board size, audit committee and board diversity. The study recommends that Nigerian financial institutions should continue efforts to improve board diversity, particularly by increasing the representation of women and other underrepresented groups.