An Empirical Examination of the Impact of Corporate Governance on Organizational Performance: Evidence from Ghana Healthcare Industry

An Empirical Examination of the Impact of Corporate Governance on Organizational Performance: Evidence from Ghana Healthcare Industry

STEPHEN OWUSU AFRIYIE

Corporate governance establishes a structure for evaluating organizational activities so that actions or work processes can be measured in a more formal and transparent manner, so that real situational reasoning can also be drawn. At the same time, corporate governance is also a means to implement these organizational principles and monitor performance through an effective board of directors. High-quality corporate governance has now become a common concern in the business community. In the past decade, "good corporate governance" has been incorporated into the healthcare industry as a factor to improve performance. The primary goal of sound corporate governance is to improve corporate performance, enhance institutional accountability, and avoid major disasters. This study uses the Ghanaian health industry as a case study to study the impact of corporate governance on organizational performance. The researcher focused on Ghana because it is the only country in Africa that has consistently implemented a universal health insurance policy since 2004. After designing a descriptive research plan, the researcher conducted a set of designed pre-coded questionnaires to 1,500 respondents in 10 regional (provincial) hospitals across the country. The primary data used in the study came from the financial statements, board documents, and other statistical information of the Ministry of Health and the Ghana Health Service. Multiple regression, logistic regression, and structural equation modeling methods were used to analyze the impact of corporate governance on organizational performance. The impact of corporate governance on organizational performance was predicted using primary and secondary data. The empirical investigation provided in this study shows that there is a positive relationship between corporate governance and performance. Since corporate governance provides a structure to confirm the goals and objectives of an organization, it is important for institutions to focus on good corporate practices that are effective in achieving improved performance. Nonetheless, the key to governance lies in the application of a reliable and achievable integrated governance system that drives the achievement of the set goals. Corporate governance encompasses the management of all the resources of an organization, which should be considered as limited, and accountability becomes the epitome of corporate governance. These resources can be financial, human, natural, social or environmental resources that make the organization sustainable in a competitive market. Achieving good corporate governance helps companies implement sustainability strategies throughout the business processes, managing goal setting and reporting. This stipulates that corporate governance maintains a culture where good relationships among stakeholders contribute optimistically to the goals of the organization. In light of this, this study aims to measure and evaluate the proposed corporate governance practices adopted by health institutions. The researcher investigated whether the corporate governance practices of different hospitals …

Jiangsu University

2019

https://scholar.google.com/citations?view_op=view_citation&hl=en&user=TbSlw38AAAAJ&cstart=20&pagesize=80&citation_for_view=TbSlw38AAAAJ:2osOgNQ5qMEC

English