Corporate governance and capital structure dynamics in the manufacturing sector in ghana

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
Corporate governance and capital structure are two key concepts in any company. For this reason, corporate governance policies are structured and developed by regulators to enhance organizational outcomes. This study therefore assessed the impact of corporate governance on capital structure in quoted manufacturing firms in Ghana. The study specifically focused on the effect of board independence, gender diversity, board size and institutional ownership as corporate governance indicators on capital structure. Data were gathered from audited financial statements of Aluworks Limited, Benso Oil Palm Plantation Limited, Greatwall Plastic Company Limited, Dannex Ayrton StarwinPlc, Unilever Ghana Limited, Permafix Industries (GHANA), Tinatett Herbal Manufacturing and Marketing Company Limited, Latex Foam Rubber Products Limited, Fan Milk Limited and Camelot Ghana Limited, from 2010 to 2020. Based on Hausman Specification test, Random Effect Model was used for the estimations. All estimations were done with STATA, version 16.0. The study further revealed that board size has a significant positive impact on the capital structure at a 10% significant level. The results revealed that quoted manufacturing companies with more females on their boards significantly have lower capital structure dynamics. Board independence did not have a significant impact on the capital structure dynamics of quoted manufacturing companies in Ghana at a 5% significant level. institutional ownership has a significant positive impact on the capital structure at a 5% significant level. Thus, the quoted manufacturing company should have a reasonable board size, composed of more females with the right technical knowledge to improve capital structure dynamics.
A thesis submitted to the department of accounting and finance, college of humanities and social sciences, school of business in partial fulfilment of the requirement for the award of degree of master of science accounting and finance.