Corporate Governance and Corporate Sustainability nexus of banks in Ghana: Is Bank Age relevant?

Abstract

The aim of the study is to explore the nexus between corporate governance and the corporate sustainability of banks in Ghana and further investigate the moderating role of bank age on the nexus. Primary data was obtained through the administration of questionnaires to senior management personnel of the banks. Covariance Based Structural Equation Model (CB-SEM) was employed to analyse the data using AMOS software.

The findings of the study indicate that, corporate governance practices of the banks influence their sustainability initiatives and performance. It also reveals that bank age moderates the relationship between corporate governance and bank sustainability.

The study presents significant contribution to theoretical and empirical literature. In addition, it has significant implication for future policies relating to the sector and likely to influence policies which offer young banks the opportunity to be guided by the old banks on their road to achieving sustainability.

The focus of the study on banks in Ghana is a limitation of the study. Therefore, it is recommended that, future studies should relate to a broader context such as Sub Sahara Africa, Africa, Asia, Europe among others. Such studies should consider a comparative study for old and young banks to provide outcome to influence policies relating to sustainability and governance.

Keywords: Corporate governance, Corporate Sustainability, Bank Age, Banks in Ghana

DOI: 10.7176/RJFA/15-5-04

Publication date: May 30th 2024