FAKUNMOJU Segun Kamoru (PhD)
Department of Finance, Lagos State University, Ojo, Lagos State
Corresponding author: segun.fakunmoju@lasu.edu.ng & fakossegun@gmail.com
AJUZIE Oluchi
Department of Finance, Lagos State University, Ojo, Lagos State
Prof. JEGEDE Charles Ayodele
Department of Finance, Lagos State University, Ojo, Lagos State
Abstract
The significance of capital mix and corporate governance have been emphasized over the years due to
failures of deposit money bank across the globe including Nigeria. Deposit money banks in Nigeria have
experience series of bank financial distress and unable to survive due to biased corporate governance and
inappropriate capital mixture. By using different sample panel data, the study examined how corporate
governance and capital mix interact on financial survival proxied capital adequacy ratio of deposit money
bank in Nigerian from 2010 to 2021. A panel regression approach was used and expost facto research
design was adopted. Findings revealed positive and significant effect of capital mix proxied by debt
equity ratio and corporate governance variables (Board size, Audit committee) on financial survival
proxied with capital adequacy ratio among selected banks in Nigeria. The study concluded that both
capital mix and corporate governance determine bank financial survival in Nigeria. The study provided
researchers, academics, banks management, and deposit money banks regulatory bodies a new perception
of how capital mix and corporate governance enhanced banks’ financial survival through formulation of
sound governance and capital mixture policies. Thus, interaction of both capital mix and corporate
governance matters for banks to survive in Nigeria.
Keywords: Audit committee, Board size, Capital adequacy ratio, Debt Equity Ratio, Financial leverage