The implications of the Altman bankruptcy prediction model on deposit money banks corporate governance in Nigeria are the subject of this research. The majority of these studies were undertaken in both Nigeria and other nations, and just a few of the Nigerian studies conducted their research in corporate firms other than the banking sector, and only a few of these banking sector studies ended in 2013. Furthermore, there is a scarcity of research on bankruptcy and corporate governance in Nigeria. Meanwhile, considering the dynamic nature of Nigerian deposit money banks, all previous research relate to a specific time span. As a result, the impact of the Altman bankruptcy prediction model on the corporate governance of Nigerian deposit money institutions was investigated in this study. The study aims to determine the impact of the Altman bankruptcy forecasting model on board independence in Nigerian deposit money banks, as well as if the model has an impact on board size in Nigerian deposit money banks. It was decided to use an ex post facto study design. From a population of 22 banks in Nigeria, a sample size of 9 deposit money banks was chosen. Data was gathered from the sampled banks annual reports and accounts for the years 2009 to 2019. With the help of E View 9.0, the study used regression analysis to examine the hypotheses. The Altman bankruptcy forecasting model has a beneficial influence on board independence however this effect is not significantly significant on deposit money institutions in Nigeria, according to the data reviewed. It was also discovered that while the Altman bankruptcy predicting model has a positive effect on board size, this effect is not statistically significant in Nigerian deposit money banks. Ezejiofor, Raymond A | Okerekeoti, Chinedu U "Altman Bankruptcy Prediction Model and Corporate Governance: An Empirical Study of Nigerian Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd46387.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/46387/altman-bankruptcy-prediction-model-and-corporate-governance-an-empirical-study-of-nigerian-banks/ezejiofor-raymond-a
International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 5 Issue 6, September-October 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD46387 | Volume – 5 | Issue – 6 | Sep-Oct 2021
Page 159
Altman Bankruptcy Prediction Model and Corporate
Governance: An Empirical Study of Nigerian Banks
Ezejiofor, Raymond A; Okerekeoti, Chinedu U
Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
ABSTRACT
The implications of the Altman bankruptcy prediction model on
deposit money banks' corporate governance in Nigeria are the subject
of this research. The majority of these studies were undertaken in
both Nigeria and other nations, and just a few of the Nigerian studies
conducted their research in corporate firms other than the banking
sector, and only a few of these banking sector studies ended in 2013.
Furthermore, there is a scarcity of research on bankruptcy and
corporate governance in Nigeria. Meanwhile, considering the
dynamic nature of Nigerian deposit money banks, all previous
research relate to a specific time span. As a result, the impact of the
Altman bankruptcy prediction model on the corporate governance of
Nigerian deposit money institutions was investigated in this study.
The study aims to determine the impact of the Altman bankruptcy
forecasting model on board independence in Nigerian deposit money
banks, as well as if the model has an impact on board size in Nigerian
deposit money banks. It was decided to use an ex post facto study
design. From a population of 22 banks in Nigeria, a sample size of 9
deposit money banks was chosen. Data was gathered from the
sampled banks' annual reports and accounts for the years 2009 to
2019. With the help of E-View 9.0, the study used regression analysis
to examine the hypotheses. The Altman bankruptcy forecasting
model has a beneficial influence on board independence; however
this effect is not significantly significant on deposit money
i