Corporate governance: the impact of director and board structure, ownership structure and corporate control on the performance of listed companies on the Ghana stock exchange

Research paper by Josephine Darko, Zakaria Ali Aribi, Godfrey C. Uzonwanne

Indexed on: 06 May '16Published on: 24 Feb '16Published in: Corporate Governance International Journal of Business in Society


Corporate Governance: The international journal of business in society, Volume 16, Issue 2, April 2016. Purpose This paper seeks to examine the relationship between corporate governance and firm performance of listed Ghanaian companies Design/methodology/approach The study adopts a longitudinal and cross-sectional data set of 20 sampled companies over a period of 5 years. The data was analysed using a panel regression and ANOVA analysis to establish the relationship between corporate governance and firm performance. Corporate governance is defined in terms of three indices –board structure, ownership structure and corporate control while firm performance is measured by return on assets, return on equity, net profit margin and Tobin’s Q. Findings The empirical results show that ownership concentration and female representation on board have a positive impact on performance. Although the results revealed no evidence to support the impact of board size and audit committee size on performance, there is significant evidence to support the fact that independent directors and audit committee frequency both adversely effect on firm performance. Research limitations/implications The scope of this study can be expanded to include non-listed firms. In addition, other corporate governance mechanisms could be considered to broaden the scope of the study. Originality/value This study contributes to the scarce literature on corporate governance and firm performance in developing countries especially in sub-Saharan Africa. The paper provides useful information that is of great value to policy makers, academics and other stakeholders.