DIRECTORS’ SHAREHOLDING AND NIGERIAN BAILED-OUT BANKS’ PERFORMANCE

This paper extends an earlier proposed framework and thus empirically examining the effect of board of directors’ share ownership on the non financial performance of banks in an era of post banking crisis that called for a bailout reform in Nigeria. This board characteristic is adopted to address a peculiar ownership structure problem in the banking sector, and consistent with the board monitoring functions as underpinned in agency theory. Based on a survey data, the result of this analysis revealed a significant relationship between board of directors’ share ownership and banks performance (financial and non-financial). This research therefore, suggests more regulation and enforcement of this as it motivates and compels boards to be more vigorous at monitoring CEOs/top managements.