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Authors
Kalu, Edith Okpo; Ajaero, Obioma Obiageli; Enyeribe, Vivian Anuli; Uchegbu, Basil Chibueze
Department of Accountancy, Alvan Ikoku Federal University of Education, Owerri
Abstract
The study examined corporate governance mechanisms and the digital transformation of deposit money banks (DMBs) in Nigeria, focusing on the effect of board composition—independent non-executive directors, non-executive directors, and executive directors—on the digital transformation of DMBs. Using empirical data from five DMBs covering the period 2010 to 2024, the regression analysis revealed that both independent non-executive directors and non-executive directors have a positive and significant effect on the digital transformation initiatives of DMBs in Nigeria. Their involvement in strategic oversight, diverse expertise, and ability to challenge executive decisions appear to enhance governance and innovation. In contrast, the negative and insignificant effect of executive directors on digital transformation suggests that operational practices alone cannot facilitate digital transformation without complementary oversight and strategic challenge from the board. Based on the findings, the study recommends that a balanced and well-structured board be employed to navigate the technological and regulatory complexities of digital banking, with greater emphasis on independent non-executive directors and non-executive directors.
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