The Effect Of Corporate Governance On Financial Performance Of Indigenous Universal Banks In Ghana
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Date
2021-02
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Publisher
knust
Abstract
This Study Examined The Effect Of Corporate Governance Variables Of Board Size, Board Composition And Ceo Duality On Financial Performance Measures Of Return On Assets (Roa), Return On Equity (Roe) And Liquidity. The Study Was An Explanatory, Quantitative, Multiple- Case Study Which Adopted The Deductive Philosophy Of Study. The Study Gathered And Examined Secondary Data On A Sample Of Eight (8) Indigenous Universal Banks From A Population Of Twenty-Three (23) Universal Banks In Ghana Spanning Over A Period Of 5 Years From 2014-2018. The Study Employed The Use Of Pearson Correlation And Panel Linear Regression Models And Anova In Analyzing The Degree Of Association Between The Variables Of Study, The Effect Of The Independent Variables On The Dependent Variables And Assessing The Predictive Strength Of The Regression Model As Well As The Significance Of The Regression Models. The Study Found That Board Size Exerts Insignificant And Positive Effect On Roa Whereas Board Composition And Ceo Duality Influence Insignificant And Negative Effects On Roa; That Board Size Influences Significant And Positive Effect On Roe Whereas Board Composition And Ceo Duality Exert Insignificant And Negative Effects On Roe; And That Board Size And Ceo Duality Influence Insignificant And Positive Effects On Liquidity Whereas Board Composition Exerts Insignificant And Negative Effect On Liquidity. The Study Recommended That Board And Firm Sizes Should Be Appropriately Enhanced To Impact Positively On Performance; That Board Members Should Be Constituted Of Outside, Non-Executive Directors With Expertise In Banking; That The Professional Capacities Of The Ceo And Board Chairman Should Be Strengthened And Enhanced Regardless Of Whether Or Not The Roles Are Held By One Person Or Separately By Two Individuals.
Description
This Study Would Not Have Been Compiled Without The Support Offered By Individual Beings In Terms Of Material, Intellectual And Emotional Assistance.
I Therefore Express My Gratitude To Allah, God The Almighty For His Grace. To Him Are Glory, Beneficence, And Praise For The Strength And Dedication Needed To Carry Out The Study.
I Also Owe Loads Of Gratitude And Appreciation To My Supervisor, Mohammed Alhassan Kamal-Deen For The Rich Suggestions, Corrections, And Direction Given To Me In The Process Of This Study. He Has Been Supportive, Patient, And Responsive. I Am Really Very Grateful To Him.
I Also Appreciate The Support Of Some Friends, Especially Dr. Alhassan Abdul-Razak, Centre Co-Coordinator, Idl (Tamale) Who Gave Me A Lot Of Emotional And Relevant Material Support Which Contributed To The Success Of This Study. I Am Very Grateful To Them.
Finally, I Am Grateful To All Those Who Gave Me Various Kinds Of Support In Relation To This Study, More Importantly, The Lead Facilitators Who Offered Insightful Guidance On The Study In Diverse Ways. Allah, God The Almighty, Richly Bless Them All.