Effect of corporate governance on financial performance of mutual fund companies in Ghana
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Date
2023
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Publisher
KNUST
Abstract
The study sets out to examine the effect of corporate governance on the financial performance of mutual fund companies in Ghana. Using panel regression specifically fixed effect and pooled ordinary least squares (OLS), the study revealed that there is a direct relationship between board size and yield to date or return, Sharpe ratio, management expense ratio and net asset value. It was revealed that there is an inverse relationship between gender diversity, Sharpe ratio and net asset value. The study revealed that there is an inverse relationship between CEO duality and yield to date or return, Sharpe ratio, management expenses ratio and net asset value. The study revealed that non-executive directors have no effect on yield to date or return, Sharpe ratio, management expenses and net asset value. Fund age was also found to be negative to fund performance. As fund age progresses, risk-adjusted returns decrease. This research is important because it sheds new light on the principal-agent issue in the mutual fund industry. A major policy recommendation is that management should ensure that CEO duality is not permitted to take place since it does not enhance financial performance.
Description
A dissertation submitted to the Department of Accounting and Finance College of Humanities and Social Sciences, In partial fulfilment of the requirements for the award of the degree of master of business administration in finance.