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Effect of Leadership and Ownership Structure on Financial Performance of Deposit Money Banks in Nigeria

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Effect of Leadership and Ownership Structure on Financial Performance of Deposit Money Banks in Nigeria


Abdulmumin Tijjani | Dr. Shamsuddeen Muhammad Ahmad



Abdulmumin Tijjani | Dr. Shamsuddeen Muhammad Ahmad "Effect of Leadership and Ownership Structure on Financial Performance of Deposit Money Banks in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-9 | Issue-4, August 2025, pp.110-157, URL: https://www.ijtsrd.com/papers/ijtsrd97194.pdf

This study investigates the effect of leadership and ownership structure on the financial performance of deposit money banks in Nigeria over the period 2014 to 2023. The research specifically examines how key governance variables Board Size, Board Gender Composition, Managerial Ownership, foreign ownership, Corporate Risk Disclosure, influence performance indicators such as return on Assets (ROA), Net Interest Margin (NIM), and Economic Value Added (EVA). Additionally, the study incorporates three control variables: management efficiency (MEFF), Non-Performing Loans, and Regulatory. Utilizing a panel dataset of twelve (12) listed Nigerian Deposit Money Banks over ten years, the study applies panel regression techniques, including Fixed Effects, Random Effects, and robust standard errors, to address heteroskedasticity and cross-sectional dependence. The findings reveal that Board Size has a negative and significant effect on ROA and EVA, suggesting that larger boards may hinder effective decision-making. Board Gender Composition and Managerial and foreign ownership positively influence performance in some models, supporting the view that diversity and insider alignment can enhance firm outcomes. Corporate Risk Disclosure consistently shows a strong positive relationship with all three performance measures, indicating the value of transparency in improving stakeholder confidence. The study contributes to the literature by providing empirical evidence from an emerging market and offers practical insights for regulators, bank management, and policymakers on the role of corporate governance in enhancing financial stability.

Board size, board gender composition, managerial ownership, foreign ownership, corporate risk disclosure, financial performance


IJTSRD97194
Volume-9 | Issue-4, August 2025
110-157
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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