Corporate Practice and Financial Stability of Listed Deposit Money Banks in Nigeria


  • Betty Oluwayemisi Ali- Momoh Federal University Oye-Ekiti
  • Bamikole Samson Fajuyagbe Ekiti State University
  • Bosede Oluwaseun Deji-Oyeleye Federal University Oye-Ekiti
  • Ayomikun Elizabeth Aduwo Federal University Oye-Ekiti
  • Taiwo Moses Suleiman Federal University Oye-Ekiti


Corporate Practice; financial stability; Deposit Money banks


This study examines the effect of corporate practices on the financial stability of listed Deposit Money Banks (DMBs) in Nigeria. Utilizing a quantitative approach, secondary data from the annual reports of ten selected DMBs between 2014 and 2023 were analyzed using statistical tools such as descriptive statistics and a panel regression model of Random effect. The results reveal significant positive effect of, corporate social responsibility expenditure and ethical compliance demonstrates a positive and statistically significant influence on earnings per share, suggesting that increased investment in CSR activities correlates with improved financial performance. Conversely, a negative but significant relationship is observed between employee turnover rate and EPS, indicating adverse effects on financial stability. Furthermore, ethical compliance exhibits a positive association with EPS, underscoring the importance of adherence to ethical standards for financial well-being. Implications of the findings extend to academia and banking practitioners, emphasizing the necessity of integrating CSR initiatives into corporate strategies to enhance financial stability. Mitigating high employee turnover rates and maintaining ethical standards are recommended strategies for bolstering financial performance. Methodologically, the study contributes by employing rigorous statistical methods and model selection techniques. In conclusion, this research sheds light on the relationship between corporate practices and financial stability within Nigerian DMBs, offering empirical evidence and methodological advancements. Recommendations include increasing CSR investment, addressing turnover issues, and upholding ethical standards to bolster financial stability and overall performance in the banking sector.

Author Biography

Bamikole Samson Fajuyagbe, Ekiti State University

Department of Accounting


Agboola, A., & Adegbie, F. (2019). Corporate Governance and Financial Reporting Quality in Nigerian Deposit Money Banks. Journal of Accounting in Emerging Economies, 9(2), 245-263.

Aigbovo, O. & Abudu, K. (2018), Ethical finance: Islamic banking and finance in Nigeria. Amity Journal of Corporate Governance, 3(1), 13-32.

Agwor, T.C. & Okafor, R. (2018), Accounting ethics and financial reporting quality of tourism and hospitality firms in Rivers State, Journal of Accounting and Financial Management, 4(3), 1-14

Al-Fawwaz, M. A., & Al-Suhaibani, M. (2020). The Impact of Corporate Governance Mechanisms on Financial Reporting Quality: Evidence from Nigerian Banks. International Journal of Accounting and Financial Reporting, 10(1), 270-289.

Agbaje, A. (2019). Corporate governance and bank performance: Evidence from Nigerian banks. Journal of Financial Regulation and Compliance, 27(3), 406-424.

Anyanwu, A., & Oyebisi, T. O. (2018). Board diversity and bank performance: Evidence from Nigeria. International Journal of Bank Marketing, 36(5), 870-888.

Azona, N. M. (2019), Investigating effects of accounting ethics on quality of financial reporting of an organization: case of selected commercial banks in South Sudan. Mediterranean Journal of Social Sciences, 10(1), 177-191.

Central Bank of Nigeria. (2018). Code of Corporate Governance for Banks and Discount Houses in Nigeria.

Central Bank of Nigeria. (2020). Code of Corporate Governance for Banks and Discount Houses in Nigeria.

Doutimiareye, N. (2022, July 2018). Corporate Social Responsibility And Financial Performance Of Listed Consumer Goods Manufacturing Firms In Nigeria.

Enofe, A. O., & Uwuigbe, U. (2017). Corporate Governance and Financial Reporting Quality: Evidence from Nigerian Deposit Money Banks. International Journal of Business and Management, 12(6), 1-14.

Ezejelue, A. C. (2017). The impact of ethical leadership on corporate performance: Evidence from the Nigerian banking sector. Journal of Business Ethics, 140(3), 497-511.

Freeman, R.E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman.

Hassan, M.K. and Mollah, S. (2018), “Corporate governance, risk-taking and firm performance of Islamic banks during global financial crisis”, May, available at:

Ogunmuyiwa, M. S., & Abiola, O. O. (2019). Corporate governance mechanisms and bank risk-taking in Nigeria: A dynamic panel data approach. International Journal of Finance & Economics, 24(4), 1608-1625.

Osagioduwa, L.O. (2019). The effectiveness of the whistle blowing policy in combating corruption in the Nigerian public sector. Global Journal of Arts Humanities and Social Science, 7 (10), 77-98.

Osagioduwa, L. O. (2022). Assessment of challenges of public auditor’s independence and report in the public sector of Nigeria. Amity Journal of management research, 5(1), 70-87.

Ogbor, J.O., Ugherughe, J. E., & Veronica, E. O. (2020), Corporate governance, risk management, accountability and transparency: A study of the Nigerian banking system. 1st international conference of the Faculty of Management Science of the University of Benin, Edo State Nigeria, pp. 588-594.

Smith, J. (2019), The importance of ethical financial reporting, Journal of Accountancy, 227(5), 26-29.

Spiceland, J. D., Sepe, J. F., Nelson, M. W., & Tomassini, L. A. (2019). Intermediate accounting (10th ed.). McGraw-Hill Education.

Securities and Exchange Commission Nigeria. (2021). Nigerian Code of Corporate Governance 2021.

Uadiale, O. M. (2018). Corporate Governance and Financial Reporting Quality in Nigerian Banks: A Panel Data Approach. International Journal of Finance and Accounting, 7(2), 63-72.

Uwuigbe, U., Ajagbe, M. A., & Falaye, F. T. (2018). Impact of risk management practices on banks' financial performance: Evidence from Nigeria. International Journal of Bank Marketing, 36(3), 493-513.



How to Cite

Ali- Momoh, . B. O. ., Fajuyagbe, B. S. ., Deji-Oyeleye , B. O. ., Aduwo , A. E. ., & Suleiman, T. M. . (2024). Corporate Practice and Financial Stability of Listed Deposit Money Banks in Nigeria. Acta Universitatis Danubius. Œconomica, 20(3). Retrieved from



Financial Economics