Responsibility Accounting and Corporate Sustainability Growth: Evidence from Listed Deposit Money Banks in Nigeria

Abstract

This study examined the relationship between responsibility accounting and corporate sustainability growth using listed deposit money banks as a reference point. Responsibility accounting was measured using Operating Expenses (OE), Net Income (NI), Interest Expense (IE) and Return on Investment (ROI) while corporate sustainability growth was measured using corporate sustainability growth rate (CSGR). Ex post facto design was adopted and data for this study was collected from the annual accounts and reports of all listed deposit money banks on the Nigerian Exchange Group (NGX) for the period ended; 2016-2022. The analysis was carried out using panel least squares regression model and the results of the study show a significant and positive association between operating expenses, net income, interest expense, return on investment and sustainability growth of banks in Nigeria at 1% to 5% level of significance. The study therefore comes to the conclusion that responsibility accounting ensures sustainability growth in the banking sector. The study recommends that managers should increase their asset base, as it has been observed that banks with large asset base control their operating and interest expense which significantly ensures banks sustainability. In addition, the managers of listed deposit money banks should use return on investment and net income as a metric to evaluate and assess the sustainability of their stewardship.