Examining the relationship between corporate governance and a firm's performance: mediating role of intellectual capital
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Date
2023
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KNUST
Abstract
Understanding how intellectual capital mediates the connection between corporate governance and firm performance is the primary focus of this research. The research methodology is quantitative, with statistical analysis being used to delve into the components. From 2016-2020, a cohort of participants will be followed in a longitudinal study. Secondary data from financial reports of listed corporations on the Ghana Stock Exchange is gathered, and panel data analysis is undertaken. The data analysis encompasses descriptive and inferential analytics, mainly employing pane regression models. The results are checked for accuracy by using diagnostic procedures for heteroscedasticity and autocorrelation. The results of the research show that effective corporate governance practises have a major bearing on business outcomes and the productive use of intellectual capital. Better company results have been linked to increased board meeting frequency and a push for board independence. These governance practices encourage sharing of information, collaboration, and strategic decision-making, all of which lead to enhanced corporate performance and better utilization of intellectual capital resources. The study's findings suggest that intellectual capital mediates the connection between strong corporate governance and bottom-line results. Effective management and use of intellectual capital have a positive influence on financial outcomes, making it a critical mechanism via which corporate governance practices improve company success. The Trade-Off Theory and Stewardship Theory provide theoretical foundations for understanding these relationships. Generally, the findings underscore the significance of effective corporate governance and efficient management of intellectual capital in driving firm performance and competitiveness
Description
A thesis submitted to the department of accounting and finance college of humanities and social sciences in partial fulfilment of the requirements for the master of science in accounting and finance