The effect of smes financing decisions on business performance in ghana: the moderating role of the corporate governance system.

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The small and medium-sized business sector (SME) is very important for the growth of every economy and for creating jobs in many countries. However, in Ghana, SMEs are not doing well even though efforts have been made to support them. Many businesses fail within five years. Therefore, the study aims to investigate how the financing choices of SMEs affects their performance and how the corporate governance system in Ghana can make a difference. Within Ghana, the sample is drawn from diverse regions and urban centers, including but not limited to Accra, Kumasi, Takoradi, Tamale, and other significant economic hubs. A crosssectional descriptive research design and quantitative research techniques was used. A survey was conducted on 120 SMEs in Ghana to gather primary data. The data was analyzed, and the responses was tested t using a computer program called WarpPLS. It was discovered that financial decisions do have a direct relationship with the performance of SMEs in Ghana. However, corporate governance which was a moderating variable proved not to have any significant influence on the nexus between financial decisions and SMEs’ performance. The findings of this research help one to understand how financial decisions impacts the performance of SMEs in Ghana. It also demonstrates how corporate governance system does not influence the relationship between financial decisions and SME performance. This information is beneficial for SME owners, policymakers, and investors who wanted to develop better strategies to help SMEs succeed in the long term.
A thesis submitted to the knust school of business accounting and finance, kwame nkrumah university of science and technology, kumasi in partial fulfillment of the requirement of the awards of msc. Accounting and finance degree