Chief Executive Officer’s Characteristics and Financial Distress Likelihood of Listed Deposit Money Banks in Nigeria: Moderated by Board Size

Authors

  • Hadiza Adamu Sange Department of Accounting, Faculty of Management Sciences, Kaduna State University Author
  • Murtala Abdullahi Department of Accounting, Faculty of Management Sciences, Kaduna State University Author
  • Idris Mohammed Department of Accounting, Faculty of Management Sciences, Kaduna State University Author

Abstract

 

 This study examines the influence of chief executive officer (CEO) characteristics on the financial distress of listed deposit money banks in Nigeria. A correlational research design was adopted, with a population of 14 banks listed on the Nigerian Exchange Group covering the period 2007–2022. Given the population, a census sampling technique was employed, resulting in a sample size of 14 banks. The study relied on secondary data and utilized the Panel Corrected Standard Errors (PCSE) regression model, supported by relevant diagnostic tests to ensure the reliability and robustness of the results. The findings from the direct model reveal that CEO gender has no significant relationship with financial distress. However, CEO tenure shows a positive and significant relationship with financial distress. CEO experience exhibits a negative but statistically insignificant relationship. In the moderated model, the interaction between CEO tenure and board size is statistically significant, highlighting the important role of board size in influencing the tenure–financial distress relationship. Based on these findings, the study recommends that regulatory bodies such as the Financial Reporting Council of Nigeria (FRCN) and the Securities and Exchange Commission (SEC) should enforce strict compliance with corporate governance codes among deposit money banks. Emphasis should be placed on balanced CEO appointments, including gender diversity, to enhance decision-making. Additionally, while CEO tenure and experience should be encouraged, effective monitoring mechanisms should be implemented to prevent managerial entrenchment. Appointing non-executive directors with relevant banking expertise should be prioritized to strengthen oversight and mitigate financial distress. 

Keywords: financial distress, chief executive officer characteristics, chief executive officer tenure, board size, Nigeria 

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Published

2026-06-22

Issue

Vol. 11 No. 1 (2026): June 2026

Section

Articles