This study investigated the effect of directors’ tunneling on financial performance of selected listed Deposit Money banks in Nigeria. A sample of 10 Deposit Money banks listed on the Nigerian Stock Exchange for a period of 9 years (from 2012-2020) was selected. Secondary method of data collection was adopted; data was sourced from the Nigerian Stock Exchange fact book. This study applied the longitudinal research design. Data collected were analyzed using Ordinary Least Square regression Method. The results show that for Deposit money banks in Nigeria, directors’ remuneration has a positive insignificant effect on return on asset (financial performance). This study therefore concluded that directors’ tunneling have an insignificant positive effect on financial performance of selected listed Deposit Money banks in Nigeria and recommended that regulators should make it mandatory for listed banks to clearly show all the remunerations and bonuses in monetary value on the annual reports and accounts to enable stakeholders determine the extent to which shareholders wealth maximization objective is in pursuit, thereby reducing the possibility of corporate tunneling.
Directors’ Tunneling, Financial Performance, Deposit Money Banks, Directors' Remuneration and Return on Asset
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