Ownership Structure and Performance of Listed Banks in Ghana
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Date
2021
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KNUST
Abstract
The main purpose of this study involves investigating whether or not any empirical relationship prevails amongst ownership forms and banks’ financial outcomes. Utilizing archival data from 8 listed banks from 2014 to 2018, this study implemented a panel regression method of random effect with the aid of Hausman test to facilitate answering the research questions. The study finds that managerial ownership engenders significant parallel associationship with performance measured with profit before interest and taxation and return on shareholders’ funds. Second, the study learns that banks owned partially by the government and foreign investors suffer substantially from achieving performance with respect to profit before interest and taxation, and return on assets. Lastly, the study makes it known that banks owned by institutions can perform creditably well but the findings lack strong statistical backing. The study recommends that owners of banking institutions should practice a managerial system of ownership, linking compensation to performance, through offering incentive contracts in the form of profit sharing, stock options and performance bonuses. Banks owned by government, institutions and foreign investors are advised to strengthen and implement robust auditing and corporate governance systems so that managerial actions can be supervised and monitored effectively
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 degree of msc. Accounting and finance