Corporate Governance and Business Sustainability of Deposit Money Banks in Nigeria

Abstract

The global financial crisis that swept the financial markets and economies around the world, causing bankruptcies and resulting economic recession has brought the concept of corporate governance into the limelight. Hence this study examined the effect of corporate governance practices on sustainability of deposit money banks in Lagos Nigeria. The study adopted a quantitative methodology using the cross-sectional survey design. The population of the study comprised of fifteen selected deposit money banks operating in Nigeria as at March, 2019.  Data was collected using a well-structured and validated research questionnaire with Cronbach's alpha ranging from 0.721 to 0.849. Data were analysed using multiple regression analysis. The study revealed that transparency and accountability jointly have a significant effect on business sustainability (R² = 0.084, p = 0.000 < 0.05). Hence, the study recommended that money deposit banks should adopt openness in their practices, they should be transparent in all they do at board level and should be committed to accountability at all levels of bank management in order to sustain customer's confidence.