CORPORATE GOVERNANCE MECHANISMS AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: EVIDENCE FROM BOARD EVALUATION, WHISTLEBLOWING, AND ESG DISCLOSURE

Abstract

This study examines the effect of selected corporate governance practices on the financial performance of listed deposit money banks in Nigeria. Corporate governance has become increasingly important in emerging economies due to its role in enhancing transparency, accountability, and overall organizational efficiency. Despite various regulatory reforms, concerns remain regarding the extent to which governance practices influence bank performance in Nigeria. The study specifically investigates board evaluation disclosure, whistleblowing policy disclosure, and environmental, social, and governance (ESG) disclosure as key governance mechanisms. Financial performance is measured using Return on Assets (ROA). The study adopts an ex post facto research design and utilizes secondary data obtained from the audited annual reports of twelve listed deposit money banks in
Nigeria over the period 2020 to 2024. Panel data regression techniques, including descriptive statistics, correlation analysis, diagnostic tests, and the Hausman specification test, were employed to analyze the data. The findings reveal that whistleblowing policy disclosure and ESG disclosure have positive and statistically significant effects on financial performance, indicating that stronger transparency and sustainability practices enhance profitability. However, board evaluation disclosure shows a positive but statistically insignificant effect on ROA. The study recommends stronger implementation of whistleblowing frameworks and enhanced ESG reporting standards to further improve bank performance and stakeholder confidence.