Impact of Corporate Governance on the Financial Performance of Commercial Banks in Ebonyi State

This study examined the impact of corporate governance on financial performance of commercial banks in Ebonyi State. The specific objectives of the study were to examine the effect of board composition; to evaluate the effect of board size; to ascertain the effect of board diversity; and to assess the effect of audit committee on financial performance of commercial banks in EBonyi State. The study covered the period 2009-2023. The summary of the major findings are: Board size was found to have positive significant impact on the financial performance of the commercial banks in Ebonyi State; Board composition was found to have significant positive impact on the financial performance of the commercial banks in Ebonyi State; Board diversity was found to have positive significant impact on the financial performance of the commercial banks in Ebonyi State; Audit Committee was found to have significant positive impact on the financial performance of the commercial banks in Ebonyi State. Based on the results from the analytical tests carried out, the researchers concluded that corporate governance has direct positive and significant impact on the financial performance of commercial banks in Nigeria. The study recommended the following: the banks should sustain the implementation of coordinated scheme that will further consolidate the composition of board members by ensuring on-boarding of only members who have the requisite qualification plus experience; the banks should sustain their board size; this will further enhance the financial performance and the performance of the banks; the banks should sustain the diversity of the board, the diversity showed to be made up in such a way to ensure that gender sentiments that could affect decision making are cleared out; and the audit committee should also be sustained, variations in the audit committee could alter the positive influence it has on the performance of the banks.