Özet:

The Nigerian banking system went through another type of reform soon after the completion of banking consolidation exercise in 2005. This came after a stress test which was done to ascertain the level of compliance with corporate governance code and soundness of banks in the country. Twelve banks were found to be in substantial compliance with the code of corporate governance and therefore considered healthy. The study has the objective of studying the impact of compliance with corporate governance code on the performance of the banks considered healthy by the Central Bank. The twelve banks considered healthy are the study sample. Data covering the period 2006-2010 were extracted from their financial statements. The study employed two techniques (t-test and ANOVA) to test for the three hypotheses formulated from the mathematical model outlined for the study. Findings revealed an impact of dispersed equity on the profitability of banks. However for board size, findings are mixed; a large board size relates to profitability but does not significantly impact on financial performance. It is recommended that there is the need to strengthen managerial policies so that both operational and financial performance can be improved

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