The study examined the effect of corporate governance on the performance of asset quality of Deposit Money Banks (DMBs) in the post 2004 banking sector reforms. The population of study consists of the twenty four (24) deposit money banks. Time series data for the post-reform period (2006-2014) were generated from the Central Bank of Nigeria (CBN) Statistical Bulletin and annual financial reports of the various banks in Nigeria and was analyzed with descriptive and inferential statistical tools. Multiple Regression analysis was used to test the hypothesis with the aid of Eview. Jacbera test was used to test for data stationarity, while Variance Inflation Factor (VIF) and Heterosckedasticity white Test were used for data diagnosis. The findings of the study revealed that the 2004 reforms caused an improvement on Bank Asset Quality (BAQ). However the improvement is not significant at 5% level. The study consequently concludes that despite the reforms, Deposit Money Banks were still faced with post reform challenges of non-performance. The research therefore recommended that more efforts should be made to ensure adequate compliance with corporate governance provisions in improving performance. Frantic efforts should be made to improve on the huge non-performing loans and management of assets quality, which to a large extent, contribute to bank failures.
| Published in | International Journal of Accounting, Finance and Risk Management (Volume 2, Issue 1) |
| DOI | 10.11648/j.ijafrm.20170201.11 |
| Page(s) | 1-9 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2016. Published by Science Publishing Group |
Corporate Governance, Asset Quality, Banking Sector
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APA Style
Sani U. Gorowa, Ali Jude Igyo. (2016). Effect of Corporate Governance on Asset Quality: Performance Evaluation of the Nigerian Banking Sector in the Post Consolidation Era. International Journal of Accounting, Finance and Risk Management, 2(1), 1-9. https://doi.org/10.11648/j.ijafrm.20170201.11
ACS Style
Sani U. Gorowa; Ali Jude Igyo. Effect of Corporate Governance on Asset Quality: Performance Evaluation of the Nigerian Banking Sector in the Post Consolidation Era. Int. J. Account. Finance Risk Manag. 2016, 2(1), 1-9. doi: 10.11648/j.ijafrm.20170201.11
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Download@article{10.11648/j.ijafrm.20170201.11,
author = {Sani U. Gorowa and Ali Jude Igyo},
title = {Effect of Corporate Governance on Asset Quality: Performance Evaluation of the Nigerian Banking Sector in the Post Consolidation Era},
journal = {International Journal of Accounting, Finance and Risk Management},
volume = {2},
number = {1},
pages = {1-9},
doi = {10.11648/j.ijafrm.20170201.11},
url = {https://doi.org/10.11648/j.ijafrm.20170201.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20170201.11},
abstract = {The study examined the effect of corporate governance on the performance of asset quality of Deposit Money Banks (DMBs) in the post 2004 banking sector reforms. The population of study consists of the twenty four (24) deposit money banks. Time series data for the post-reform period (2006-2014) were generated from the Central Bank of Nigeria (CBN) Statistical Bulletin and annual financial reports of the various banks in Nigeria and was analyzed with descriptive and inferential statistical tools. Multiple Regression analysis was used to test the hypothesis with the aid of Eview. Jacbera test was used to test for data stationarity, while Variance Inflation Factor (VIF) and Heterosckedasticity white Test were used for data diagnosis. The findings of the study revealed that the 2004 reforms caused an improvement on Bank Asset Quality (BAQ). However the improvement is not significant at 5% level. The study consequently concludes that despite the reforms, Deposit Money Banks were still faced with post reform challenges of non-performance. The research therefore recommended that more efforts should be made to ensure adequate compliance with corporate governance provisions in improving performance. Frantic efforts should be made to improve on the huge non-performing loans and management of assets quality, which to a large extent, contribute to bank failures.},
year = {2016}
}
TY - JOUR T1 - Effect of Corporate Governance on Asset Quality: Performance Evaluation of the Nigerian Banking Sector in the Post Consolidation Era AU - Sani U. Gorowa AU - Ali Jude Igyo Y1 - 2016/12/27 PY - 2016 N1 - https://doi.org/10.11648/j.ijafrm.20170201.11 DO - 10.11648/j.ijafrm.20170201.11 T2 - International Journal of Accounting, Finance and Risk Management JF - International Journal of Accounting, Finance and Risk Management JO - International Journal of Accounting, Finance and Risk Management SP - 1 EP - 9 PB - Science Publishing Group SN - 2578-9376 UR - https://doi.org/10.11648/j.ijafrm.20170201.11 AB - The study examined the effect of corporate governance on the performance of asset quality of Deposit Money Banks (DMBs) in the post 2004 banking sector reforms. The population of study consists of the twenty four (24) deposit money banks. Time series data for the post-reform period (2006-2014) were generated from the Central Bank of Nigeria (CBN) Statistical Bulletin and annual financial reports of the various banks in Nigeria and was analyzed with descriptive and inferential statistical tools. Multiple Regression analysis was used to test the hypothesis with the aid of Eview. Jacbera test was used to test for data stationarity, while Variance Inflation Factor (VIF) and Heterosckedasticity white Test were used for data diagnosis. The findings of the study revealed that the 2004 reforms caused an improvement on Bank Asset Quality (BAQ). However the improvement is not significant at 5% level. The study consequently concludes that despite the reforms, Deposit Money Banks were still faced with post reform challenges of non-performance. The research therefore recommended that more efforts should be made to ensure adequate compliance with corporate governance provisions in improving performance. Frantic efforts should be made to improve on the huge non-performing loans and management of assets quality, which to a large extent, contribute to bank failures. VL - 2 IS - 1 ER -
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