Bank sustainability: Do corporate governance and internal audit quality matter?
This study investigates the nexus between corporate governance, internal audit quality, and the sustainability of banks within in a developing country context. This study adopts a quantitative explanatory research design to analyze a panel dataset comprising 15 Ghanaian banks over the period 2007 to...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | World Development Sustainability |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2772655X25000205 |
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| author | Prince Gyimah Richard Owusu-Afriyie |
| author_facet | Prince Gyimah Richard Owusu-Afriyie |
| author_sort | Prince Gyimah |
| collection | DOAJ |
| description | This study investigates the nexus between corporate governance, internal audit quality, and the sustainability of banks within in a developing country context. This study adopts a quantitative explanatory research design to analyze a panel dataset comprising 15 Ghanaian banks over the period 2007 to 2021. An ordered probit regression model is employed to identify the key determinants of bank sustainability.The results demonstrate that corporate governance attributes—specifically board size, board expertise, and the extent of corporate governance disclosures—significantly influence bank sustainability. Furthermore, internal audit quality, assessed through audit experience, internal audit presence, and audit function size, emerges as a critical determinant of sustainability outcomes. Control variables such as bank size, age, and affiliation with Big Four auditing firms enhance the robustness of the model. The findings underscore the imperative of strengthening governance structures and internal audit mechanisms to ensure long-term financial sustainability. This research contributes to the accounting and finance literature by offering empirical insights relevant to emerging markets, and provides actionable implications for regulators, policymakers, and financial institutions aiming to align governance frameworks with strategic sustainability objectives. |
| format | Article |
| id | doaj-art-966bf210b6cc45dcb12ec6209ccb943e |
| institution | Kabale University |
| issn | 2772-655X |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | World Development Sustainability |
| spelling | doaj-art-966bf210b6cc45dcb12ec6209ccb943e2025-08-20T03:30:49ZengElsevierWorld Development Sustainability2772-655X2025-06-01610022210.1016/j.wds.2025.100222Bank sustainability: Do corporate governance and internal audit quality matter?Prince Gyimah0Richard Owusu-Afriyie1Department of Accounting Studies Education, Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development, Ghana; Corresponding author.Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology, GhanaThis study investigates the nexus between corporate governance, internal audit quality, and the sustainability of banks within in a developing country context. This study adopts a quantitative explanatory research design to analyze a panel dataset comprising 15 Ghanaian banks over the period 2007 to 2021. An ordered probit regression model is employed to identify the key determinants of bank sustainability.The results demonstrate that corporate governance attributes—specifically board size, board expertise, and the extent of corporate governance disclosures—significantly influence bank sustainability. Furthermore, internal audit quality, assessed through audit experience, internal audit presence, and audit function size, emerges as a critical determinant of sustainability outcomes. Control variables such as bank size, age, and affiliation with Big Four auditing firms enhance the robustness of the model. The findings underscore the imperative of strengthening governance structures and internal audit mechanisms to ensure long-term financial sustainability. This research contributes to the accounting and finance literature by offering empirical insights relevant to emerging markets, and provides actionable implications for regulators, policymakers, and financial institutions aiming to align governance frameworks with strategic sustainability objectives.http://www.sciencedirect.com/science/article/pii/S2772655X25000205Financial systemsBanksSustainabilityDeveloping economiesSustainable development |
| spellingShingle | Prince Gyimah Richard Owusu-Afriyie Bank sustainability: Do corporate governance and internal audit quality matter? World Development Sustainability Financial systems Banks Sustainability Developing economies Sustainable development |
| title | Bank sustainability: Do corporate governance and internal audit quality matter? |
| title_full | Bank sustainability: Do corporate governance and internal audit quality matter? |
| title_fullStr | Bank sustainability: Do corporate governance and internal audit quality matter? |
| title_full_unstemmed | Bank sustainability: Do corporate governance and internal audit quality matter? |
| title_short | Bank sustainability: Do corporate governance and internal audit quality matter? |
| title_sort | bank sustainability do corporate governance and internal audit quality matter |
| topic | Financial systems Banks Sustainability Developing economies Sustainable development |
| url | http://www.sciencedirect.com/science/article/pii/S2772655X25000205 |
| work_keys_str_mv | AT princegyimah banksustainabilitydocorporategovernanceandinternalauditqualitymatter AT richardowusuafriyie banksustainabilitydocorporategovernanceandinternalauditqualitymatter |