EFFECT OF CORPORATE GOVERNANCE ON FINANCIAL ACCOUNTABILITY OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

This study examined the effect of corporate governance on financial accountability and reporting quality in selected deposit money banks in Nigeria, including First Bank, UBA, Zenith, Access Bank, and Sterling Bank. Data were analyzed using SPSS with descriptive statistics, correlation, and regression techniques. The findings revealed a significant and positive relationship between corporate governance practices and financial reporting quality (r = 0.812, p < 0.05), indicating that effective governance enhances transparency and reduces financial misstatements. Regression analysis showed that board composition explained 60.2% of the variance in financial accountability, while multiple regression established that board independence, audit committees, and management disclosure collectively accounted for 74.8% of the variation in accountability and financial risk reduction. Among these variables, management disclosure emerged as the strongest predictor, underscoring the importance of transparency in promoting accountability and fraud prevention. The study concluded that robust corporate governance mechanisms are critical in improving financial accountability, mitigating financial risks, and sustaining public trust in the Nigerian banking sector. It recommended strengthening board independence and composition, enhancing audit committee effectiveness, improving transparency in financial disclosures, enforcing stricter governance regulations, integrating technology in oversight, building governance capacity, and fostering an ethical corporate culture. These findings reinforce the relevance of Agency Theory and highlight the need for effective governance as a driver of accountability and institutional stability in Nigeria’s banking industry.