Keywords
Jaiz Bank
NCCG 2018
Financial Performance
Nigeria
Legitimacy
Reputational loss
Abstract
This study explored how corporate governance affects Jaiz Bank Plc performance: assessing the impact of the Nigerian code of corporate governance 2018 (NCCG 2018) on Jaiz Bank Plc 2020 to 2025 performance. The research design used was ex post facto research design where secondary data was collected in the form of annual reports and financial statements of the bank. The relationship between the corporate governance variables and the financial performance indicators (return on assets and return on equity) was determined by the use of multiple regression analysis. The results indicated that corporate governance was significantly positively related to bank performance, and the risk governance ( = 0.42, p = 0.001), board independence ( = 0.35, p = 0.002), audit committee effectiveness ( = 0.28, p = 0.004), and disclosure practices ( = 0.31, p = 0.00). The model also established that it had a high explanatory power with a value of R2 of 0.78 implying that 78 percent of financial performance variation was explained by corporate governance variables. Board size was however found to have no statistical significance. It was found that the application of NCCG 2018 enhanced the financial performance of Jaiz Bank Plc and greatly improved the governance structures. Regulatory bodies were advised to enhance compliance measures, and to maintain the performance gains, banks were advised to focus on board independence, transparency, and risk governance.
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