ABSTRACT

The study focused on the Effect of Corporate Governance and Accountability on Sustainability in Selected Government Parastatals in South East Nigeria. The specific objectives sought to achieve in this study, includes to: determine the effect of directors’ independence on performance of Selected Government Parastatals in South East Nigeria, ascertain the effect of focus diversity on efficiency of Selected Government Parastatals in South East Nigeria, assess the impact of  accountability and regular compensation review on effectiveness of Selected Government Parastatals in South East Nigeria, examine the effect of auditor independence and transparency on sustainability of Selected Government Parastatals in South East Nigeria and establish the effect of shareholders rights and takeover on growth of Selected Government Parastatals in South East Nigeria. A survey research design was adopted for the study. The study had a population size of 3327, out of which a sample size of 358 was realized using Taro Yamanes’s formula at 5% error tolerance and 95% level of confidence. Instrument used for data collection was primarily questionnaire and interview. Out of 358 copies of the questionnaire that were distributed, 333 copies were returned while 25 were not returned. The hypotheses were tested using Regression and Pearson Product Moment Correlation statistical tools. The findings indicate that there is significant effect of directors’ independence on performance of Selected Government Parastatals in South East Nigeria, also that there is significant effect of focus diversity on efficiency of Selected Government Parastatals in South East Nigeria, there is significant effect of accountability and regular compensation review on effectiveness of Selected Government Parastatals in South East Nigeria, there is significant effect of auditor independence and transparency on sustainability of Selected Government Parastatals in South East Nigeria, and there is significant effect of shareholders rights and take over on growth of Selected Government Parastatals in South East Nigeria. The study recommended that there is need for government parastatals to adopt corporate governance mechanisms in order to make the boards of directors more independent, avoid unnecessary intervention of managing directors in important committees, and in that way improve performance of government parastatals.