Corporate Governance and Liquidity Management: Evidence from Nigerian Deposit Money Banks

Authors

1 Accounting, College of Arts, Social and Management Sciences, Crescent University, Abeokuta, Ogun State, Nigeria.

2 Department of Accounting, Babcock University, Ilishan Remo, Ogun State, Nigeria.

Abstract

We examined corporate governance and liquidity management of Nigerian banks by obtaining data from annual reports of the 10 deposit money banks from 2012 to 2018.  Data were analysed using Generalized Method of Moment (GMM). Findings showed that previous year liquidity significantly and positively influence current year liquidity ratio. Board size has negative insignificant effect on liquidity management while board meetings have direct but insignificant influence on liquidity management. Board independence shows significant but negative effect on liquidity management. Gender diversity and bank size were found to exhibit indirect and insignificant influence. The study concludes that corporate governance has joint significant effect on liquidity management of Nigerian DBMs. The main recommendation arising from the finding is that inclusion of directors on the board should be based on their skills and ability to understand and drive banks operation.
 

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