Dataset on managerial incentives and bank performance: Evidence from Nigerian deposit money banks

This study presents a data-set on the influence of managerial incentives on bank performance in selected Deposit Money Banks (DMB) in Nigeria. The use of managerial incentives to align interests of the principal and agent is advocated by agency theorists, but the peculiarity of the banking industry in terms of the role of regulation, capital structure, opacity and complexity of its transactions among others presents a different proposition in corporate governance research. The data collected over a longitudinal period between 2006 and 2016, provide information on specific managerial incentives and financial performance measures. Descriptive and inferential statistics such as correlation, and panel regression analysis estimates are presented. When analysed, the data can be a pointer in determining the unique managerial incentives predictors that could enhance a bank׳s performance.


Specifications
Sourcing data on managerial incentives, and historical stock market prices for research is quite challenging in a developing country like Nigeria, hence scientific conclusions can be drawn from the dataset.
The dataset can be used by academia, managers, board, investors, and regulators to identify specific managerial incentives as predictors of bank performance.

Data
The dataset contains raw descriptive and inferential statistics. Panel data regression analysis was used to test the relationships between managerial incentives and bank performance. Table 1 provides data about the descriptive statistics for the study variables. Table 2 provides data on correlations and variance inflation factors for the variables used in the empirical analysis, while Table 3 provides data on the estimates of the panel regression specification.

Experimental design, materials and methods
Data for the study on managerial incentives were manually extracted from the annual reports (directors' profile, and notes to the accounts) of the selected banks, while performance measures were computed based on the banks' financials and online stock market reports. The eight (8) deposit money banks selected for the study were the final sample after meeting the evaluation criteria which included among others the availability of data for the period under study. The banks are from both Tier 1 and Tier 2 categories, while five (5) [8][9][10]. A panel data regression comprising consistent fixed effect estimates, efficient random effect estimates and Hausman test was adopted to analyse the dataset. This is consistent with studies in Refs. [3][4][5]. Preliminary tests on analysis of measures involving correlation matrix, variance inflation factors to test multicollinearity was performed. The data was analysed using the Eviews software Version 9. Econometric  0.000 0.000 0.000 0.000 ***, **, and * denote significance at the 0.01, 0.05, and 0.10 levels, respectively. The t-statistics (reported in parenthesis).
analysis was adopted to determine the nature of the relationship between managerial incentives and bank performance using the following panel regression model: The estimates for the regression are presented in Table 3. Table 1 presents the descriptive statistics on the managerial incentives measures, and the bank performance measures. The maximum CEO tenure of 19 years was a sunset observation recorded at the inception of the implementation of the revised corporate governance code. The code prescribes a tenure limit of 10 years subject to a maximum of two-terms. The reported maximum value of NGN 201 million as Board Chairman Remuneration is also attributed to the sunset effect prior to the implementation of the revised code of corporate governance in the banking sector. Female representation on bank boards was low at an average of 11.67%, but the rate is comparable to other studies.
Results of the correlation and variance inflation factors in Table 2 show no evidence of multicollinearity.
Following from Table 3, three managerial incentives show a negative significant influence on bank performance in selected deposit money banks in Nigeria: Board Chair remuneration (on ROA, ROE, and TBQ); CEO remuneration (on TBQ and NIM), and CEO Share ownership (on TBQ). Conversely, Board Chair Tenure showed a positive significant effect on bank performance (NIM). These estimates have managerial implications. As banks seek to improve their financial performance, the role of managerial incentives needs to be given a special consideration in order to identify what creates or erodes shareholders' value. The dataset provides useful insights for board remuneration and nomination committees, investors, and regulators to understand the influence of managerial incentives in enhancing a deposit money bank's performance.