Determinants of Corporate Governance Quality in Commercial Banks: Evidence from Nigeria

The determinants of corporate governance quality have been identified in the empirical literature. However, further evidence has emerged that the variables may complement each other within the framework of contextual variables, resulting in multiple paths to achieving corporate governance quality. Furthermore, the empirical literature has been criticised for using the symmetry and net effect methodology of multiple regression and structural equation modelling against the asymmetry and bundle effect methodology. Therefore, this study examines the determinants of corporate governance quality in the Nigerian banking industry between 2006 and 2021 within the configurational theory, environmental factors of life cycle phases, and firm importance. The study used the panel secondary data obtained from the annual audited financial statements of 11 publicly quoted deposit money banks (commercial banks) on the Nigerian Exchange Group with complete financial information during the period under review. Based on the configurational theory, which is anchored on the tenets of conjunctural causation, equifinality, and causal asymmetry, the study uses fuzzy-set qualitative comparative analysis (fsqca) to achieve the objective of the study. The results show that contrary to the extant literature, five equifinal configurations explain the determinants of corporate governance quality among deposit money banks in Nigeria. The study concludes that corporate governance quality cannot be achieved by a single factor but by a complex combination of factors within the context of life cycle phases. The study has theoretical, methodological, and practical implications for bank management and regulatory authorities.