Deposit money banks around the world have been experiencing challenges over the years in the area of survival and market share. These challenges are attributable to weak or defective corporate governance mechanisms. Significant pressure led to the application of corporate governance principles, which were generally considered the solution to the problems occurring in these countries’ market environments. In the light of this, this study sought to evaluate the effect of board diversity and board size on market share of selected deposit money banks in Lagos Nigeria. The study adopted the cross-sectional survey design. The total number of top managements including directors and Independent directors in the deposit money banks was two hundred and twenty six (226). Considering the size of the population of the study, total enumeration method was adopted as the sampling technique. The data for the study was obtained using a well-structured and validated questionnaire. The study found that board diversity and board size have a combined significant effect on market share of the selected deposit money banks (R = 0.386, R2 = 0.149 p < 0.05). On an individual level, it was found that board diversity has no significant effect on market share of deposit money banks in Lagos state (β = -0.189, p > 0.05), board size has a significant effect on market share of the selected deposit banks in Lagos state. (β = -0.413, p < 0.05). The study therefore recommended that firms especially deposit money banks should adopt proper strategies to improve board dynamics in terms of size and diversity in order to enhance their share of the market.
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