Organizational Governance and Commercial Viability of Deposit Money Banks in Nigeria

Authors: DR. IHENYEN Joel Confidence; KIERIAMA Diepreye Sam; PEDRICK Azibakalegiri Maten

Affiliation: Department of Accounting, Faculty of Management Sciences, Niger Delta University, Wilberforce Island, Bayelsa State.

Corresponding Author: [email protected]

December 31, 2025

SIAR-Global Journal of Computer, Information & Library Science

DOI: 10.5281/zenodo.18403480

Organizational Governance and Commercial Viability of Deposit Money Banks in Nigeria
Research Article Multidisciplinary

Abstract

This paper investigated the influence of organizational governance mechanisms on commercial viability, specifically measured by Net Profit Margin (NPM), within the context of Nigerian Deposit Money Banks (DMBs). Utilizing an ex post facto research design and secondary data from 17 sampled DMBs over a ten-year period (2013–2022), the research employed panel regression analysis to test the relationships between NPM and key governance variables: executive compensation (EXCOM), board size (BSZ), board diversity (BDV), and the separation of CEO and Chair roles (CEOSEP).The findings from the Random-Effects model indicate that the governance variables collectively possess significant explanatory power (R 2 =0.6543). Crucially, EXCOM, BDV, and CEOSEP were found to have a positive and statistically significant influence on NPM (p<0.05). This suggests that governance practices such as enhanced board diversity, higher executive compensation, and the separation of leadership roles are associated with improved financial performance in the Nigerian banking sector. The study affirms that strong, well-structured corporate governance is a vital determinant of the commercial success and profitability of DMBs

Keywords

Organizational governance, commercial visibility, deposit money banks, Net profit margin.

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How to Cite

DR. IHENYEN Joel Confidence; KIERIAMA Diepreye Sam; PEDRICK Azibakalegiri Maten (2025). Organizational Governance and Commercial Viability of Deposit Money Banks in Nigeria. SIAR-Global Journal of Computer, Information & Library Science, Vol. 1, No. 1. DOI: 10.5281/zenodo.18403480

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Article Information

  • Type: Research Article
  • Journal: SIAR-Global Journal of Computer, Information & Library Science
  • Subject Area: Multidisciplinary
  • Published: December 31, 2025
  • Volume: 1
  • Issue: 1
  • Word Count: Not specified
  • DOI: 10.5281/zenodo.18403480
  • Processing Fee: $35.00 USD

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