The impact of board and audit committee on banks’ performance: the case of some universal banks in ghana
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Date
2023
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KNUST
Abstract
Following the extensive financial crises with its resultant collapse of some world leading businesses, the concept of corporate governance has received considerable attention in both industrial and academic circles. The role of board of directors and audit committee in the death and survival of corporate entities has become a key component of the corporate governance architecture. The study examines the composition of board of directors and audit committee and its effects on service delivery and firm performance in the Ghanaian banking industry. It also in addition explores how service delivery and firm performance differ with respect to ownership identities. Firm performance and service delivery was measured using Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). Spearman findings indicate some validity and support for the relevance of corporate governance to firm performance in the Ghanaian banking industry. Using the GMM, fixed and random effect econometric models, board size and the presence of independent non-executive directors were observed to have significant positive effects on firm performance. The BoG and managers of the individual banks are advised, in light of the study's findings, to make sure that members of the audit committee are objective and constructively represented on the boards of the banks. Given that this significantly affects the bank's profitability, the BoG and leadership of the different universal banks are urged to make sure that the Board includes members with experience in accounting and finance.
Description
A thesis submitted to the institute of distance learning, kwame nkrumah university of science and technology in partial fulfilment of the requirement for the degree of master of science in accounting and finance