Journal of Business and Management

Journal of Business and Management

ISSN: 2291-1995 (Print)    ISSN: 2291-2002 (Online)

Volume 2 (2013), No. 3, Pages 12-21

DOI: 10.12735/jbm.v2i3p12

Download Full Text:

Impact of Corporate Governance on Non-Performing Loans of Nigerian Deposit Money Banks

Terzungwe Nyor1  Simon Kolawole Mejabi2 

1Department of Accounting, Nigerian Defence Academy, Kaduna, Nigeria
2Department of Accountancy, Kaduna Polytechnic, Kaduna, Nigeria

URL: https://doi.org/10.12735/jbm.v2i3p12Citation: 1 (Details)

To Cite this Article     Article Views: 993     Downloads: 532  Since January, 2015

Abstract

This study examines the impact of Corporate Governance (CG) variables of Board Size (BS), Board Composition (BC), Composition of Audit Committee (CAC) and Power Separation (PS) on Non-performing Loans of Nigerian Deposit Money Banks; with a view to finding out whether these CG variable can be useful in curtailing the incidence of non-performing loans that have bedeviled Nigerian Money Deposit Banks. Secondary data was used from fourteen (14) quoted banks on Nigerian Stock Exchange from 2005-2011. Using multivariate regression analysis, the study finds that corporate governance variables of BS, BC, CAC and PS have no significant impact on non-performing loans of Nigerian Deposit Money Banks. Hence, the study concludes that BS, BC, CAC and PS cannot be relied upon to check the rising figure of non-performing loans of Nigerian Deposit Money Banks. Therefore, we recommend that the oversight and monitoring functions of Central Bank of Nigeria should be strengthened to ensure adherence to rules and principles guiding the approval and monitoring of loans and advances.

JEL Classifications: G34, E58

Keywords: corporate governance, non-performing loans, board size, board composition, power separation

To Cite this Article: Nyor, T., & Mejabi, S. K. (2013). Impact of corporate governance on non-performing loans of Nigerian deposit money banks. Journal of Business and Management, 2(3), 12-21. https://doi.org/10.12735/jbm.v2i3p12

Copyright © Terzungwe Nyor & Simon Kolawole Mejabi

Creative Commons License
This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

To make sure that you can receive messages from us, please add the 'todayscience.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

Impact of Corporate Governance on Non-Performing Loans of Nigerian Deposit Money Banks
reviwers