Journal of Finance and Bank Management

Board of Director’s Characteristics and Performance of Listed Deposit Money Banks in Nigeria
Shehu Usman Hassan, Musa Adeiza Farouk

Abstract
This paper examines the influence of Board of Director Characteristics on the Performance of listed Deposit Money Banks in Nigeria for the period of 2007-2011. The listed Deposit Money Banks are twenty one (21) in numbers out of which a sample of thirteen (13) were used for the study. Specifically, the study seeks to find if Board of Directors Characteristics (proxy by Inside Director, Board Size, and Board Composition) has any influence on Performance of listed Deposit Money Banks in Nigeria. The study adopted multiple regression technique as a tool of analysis and data were collected from secondary source through the annual reports and accounts of the sampled firms. The findings reveal that Board Composition is positively, strongly and significantly influencing the Performance of listed Deposit Money Banks in Nigeria, while the Board Size have a negative impact on Performance, Inside director was found to have insignificant contribution to Banks Performance. It is however, recommended that the listed Deposit Money Banks should increase the number of outside directors on Board to an average of 60% to 70% as the higher numbers may help in watching over the excess of the Executive directors. Also the number of board members should be reduce to average of nine (9) members as this may help improve the Banks performance.

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