Examining the relationship between corporate governance and performance of listed banks in Ghana

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Corporate governance has become one of the topical issues in recent times, following a number of corporate failures in the banking sector with the reported collapsing cases of UT Bank, unibank and other financial institutions. The fundamental aim of this research was to examine the relationship between corporate governance and performance of listed banks on the Ghana Stock Exchange (GSE). A quantitative approach with a descriptive explanatory sequential design was adopted. Questionnaires were used to collect data on corporate governance practices, compliance with corporate governance code and management assessment of financial performance. A regression analysis methodology was adopted to establish the causality between the variables. The results showed that corporate governance practices and compliance with corporate governance code have a significant effect on financial performance of the banks on GSE and causes 13.4% change in financial performance. Also, compliance with corporate governance codes causes a 35.9% change in corporate governance practices. Compliance with corporate governance code has a higher impact of financial performance; hence for policy implications, the banks on GSE should adhere strongly to the corporate governance codes. However, gender diversity did not have significant effect on financial performance. Recommendations were therefore made that regulations which will make gender diversity more significant be instituted by the Bank of Ghana. Similar research work on corporate governance practices and social corporate responsibility of financial institutions as well as the influence of adoption of disruptive technology on financial performance was also suggested.
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 master of science in accounting and finance