CORPORATE GOVERNANCE AND FINANCING DECISION: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA
The financial distress being regularly experienced in the banking industry; distortions in markets conditions coupled with the deficiency in the system of governance that coordinates the financing decisions of companies has necessitated the need to explore the relationship between corporate governance components and financing decisions. Using Ex-post facto research design, the study covers the period of 2009 to 2018. Ten deposit money banks that have needed data and fully listed on the Nigerian Stock Exchange throughout the period of coverage of the study were purposively selected. Data gathered were analyzed using panel data regression analysis under random effect model approach. The findings of the study revealed that board independence and ownership structure showed positive relationship and significant effect on all the measurements of financial decisions of deposit money banks in Nigeria. It is recommended that the independence of the board should not be compromised as they carefully make up a board that constitutes larger ownership structure that will influence the financing decision of the firms positively. Keywords: Board independence, ownership structure, leverage, deposit money banks, financing decision