THE IMPACT OF CORPORATE GOVERNANCE ON FIRM VALUE IN THE NIGERIAN BANKING SECTOR | Journal of Econom

Corporate governance is extremely important for all publicly traded companies, as it has been suggested that publicly traded companies are more likely to obtain external financing not only because of the capital market's reputation and excessive investor optimism, but also because of the assurances provided by their corporate governance systems.

The purpose of this study is to utilise a Corporate Governance Index (CGI) to determine if effective corporate governance practices/structures in the Nigerian banking sector increase or decrease the market value of deposit money institutions. Using Tobin's Q ratio as a proxy for Firm Value, the study used a panel data regression approach on data gathered from annual reports of listed (DMBs) deposit money banks in Nigeria from 2006 to 2017.

According to the research, Firm Corporate governance and market capitalisation have a positive relationship with value. As a result, DMBs with solid corporate governance processes and great profitability are valued higher by capital market investors, whereas those that are rising in size and age are likely to be valued lower.

DMBs in Nigeria should thus pay more attention to corporate governance principles in order to increase their business value and attract more capital market investors. Regulatory bodies such as the Central Bank of Nigeria (CBN), the Nigeria Deposits Insurance Corporation (NDIC), and the Securities and Exchange Commission (SEC) should develop and harmonise good corporate governance indexes for DMBs in Nigeria, as well as ensure compliance by DMBs, in order to improve corporate governance.

Please see the link :- https://www.ikprress.org/index.php/JET/article/view/112