UNDERSTANDING THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND FIRM VALUE IN NIGERIAN DEPOSIT MONEY BANKS: AN EMPIRICAL EXAMINATION

Abstract

Corporate governance plays a crucial role in directing and controlling companies as separate entities, involving the relationship between owners and managers. It encompasses the mechanisms and processes through which management effectively manages resources to achieve desired results. The aim of good corporate governance is to ensure accountability, responsibility, and the protection of shareholders' interests while maximizing wealth and aligning the interests of all stakeholders. The association between corporate governance and firm value, a measure of a business's market value, remains inconclusive and complex. Scholars have presented mixed findings on this relationship. Ineffective corporate governance structures result in underperformance and the inability to meet stakeholders' expectations.

This study focuses on the effect of corporate governance characteristics on the firm value of listed deposit money banks in Nigeria from 2010 to 2020. The specific objectives are to investigate the relationship between board size, board independence, board ownership, gender diversity, and board meetings with Tobin q, a measure of firm value, in Nigerian deposit money banks.

The study employs empirical research methods to analyze data from the specified period. The findings will contribute to the understanding of how corporate governance structures influence firm value in the context of Nigerian deposit money banks. Understanding these relationships can assist policymakers, regulators, and practitioners in formulating effective corporate governance frameworks that enhance firm performance and stakeholder satisfaction. The study also sheds light on the importance of transparent and accountable corporate governance practices in the financial sector, promoting stability and sustainable growth.