IMPACT OF CORPORATE GOVERNANCE ON THE PERFORMANCE OF GUARANTEE TRUST BANK (GTBANK)

Abstract

This study examines the impact of corporate governance on the performance of Guarantee Trust Bank (GTBank), focusing on the role of board size and board independence in enhancing performance. Utilizing an ex-post facto research design, secondary data were collected from GTBank’s annual reports and audited financial statements for the period 2013 to 2023. The hypotheses were analysed using Ordinary Least Squares (OLS) regression, conducted with EViews software version 10. The findings reveal that board size has a positive and statistically significant relationship with return on assets (ROA). This underscores the role of a well-structured board in driving financial performance. The study concludes that there is a strong and significant positive relationship between board size and financial performance, emphasizing the importance of an appropriately sized board in fostering effective decision-making and strategic alignment. Based on these findings, the study recommends that GTBank should maintain an optimal board size that balances the benefits of diverse expertise with the need to avoid inefficiencies associated with overly large boards. Regular evaluations of board composition should be conducted to ensure alignment with the organization’s strategic goals and evolving needs. Additionally, mechanisms should be put in place to leverage the diverse expertise of board members to further enhance governance and organizational performance.