Dublin Core
Title
A Comparative Study of Corporate Governance Systems and their Effect on the Financial Performances of Listed and Non- Listed Banks in Ghana.
Creator
Augustus Martey-Kipps
Description
The focus of this research is to do a comparative study of corporate governance systems and
its effect on the financial performance of listed and non -listed banks in Ghana. The study sampled 6 banks (3 listed and 3 non -listed on the Ghana Stock Exchange) out of the 35 universal banks in Ghana. Secondary data from the annual reports of the banks were used for the analysis. The data used comprises of return on assent which is a proxy for financial performance for banks, and corporate governance variable which included Board composition, Board Size and CEO Term of office. The data for establishing the relationship between governance and financial performance of Banks in Ghana were analysed using panel data analysis.
Finding from the study led to the conclusion that there is no significant difference between corporate governance system of listed and non-listed banks on the Ghana Stock Exchange. The study further concluded that there is no significant difference between the financial performance of listed and non-listed companies on the Ghana Stock Exchange. Lastly, finding of the research conclude that corporate governance has a significant effect on financial performance of banks in Ghana. The study established a negative but significant influence of board size on banks in Ghana. It also established a positive and significant influence of board composition and bank’s financial performance in Ghana. The study also found that the CEO term in office has a positive but insignificant influence on the financial performance of banks.
The study recommends that the number of members on the board should not be too large as it negatively affects the firm’s financial performance. This study recommends that measures should be put in place to ensure a higher number of non-executive board members to enhance board independence as this will improve financial performance. Finally the recommended that CEOs should be allowed a fairy longer term in office to enhance their productive.
its effect on the financial performance of listed and non -listed banks in Ghana. The study sampled 6 banks (3 listed and 3 non -listed on the Ghana Stock Exchange) out of the 35 universal banks in Ghana. Secondary data from the annual reports of the banks were used for the analysis. The data used comprises of return on assent which is a proxy for financial performance for banks, and corporate governance variable which included Board composition, Board Size and CEO Term of office. The data for establishing the relationship between governance and financial performance of Banks in Ghana were analysed using panel data analysis.
Finding from the study led to the conclusion that there is no significant difference between corporate governance system of listed and non-listed banks on the Ghana Stock Exchange. The study further concluded that there is no significant difference between the financial performance of listed and non-listed companies on the Ghana Stock Exchange. Lastly, finding of the research conclude that corporate governance has a significant effect on financial performance of banks in Ghana. The study established a negative but significant influence of board size on banks in Ghana. It also established a positive and significant influence of board composition and bank’s financial performance in Ghana. The study also found that the CEO term in office has a positive but insignificant influence on the financial performance of banks.
The study recommends that the number of members on the board should not be too large as it negatively affects the firm’s financial performance. This study recommends that measures should be put in place to ensure a higher number of non-executive board members to enhance board independence as this will improve financial performance. Finally the recommended that CEOs should be allowed a fairy longer term in office to enhance their productive.
Subject
MBA FINANCE
Date
May, 2018
Format
PDF