The Effect of Corporate Governance on The Performance of Financial Institutions. Evidence from Banks in Ghana
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Date
2021
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Publisher
KNUST
Abstract
The study is conducted to examine the effect of corporate governance on the performance of banks in Ghana. The objectives of the study are to examine the relationship between corporate governance mechanisms and the performance of banks in Ghana, determine the effect of corporate governance on the performance of banks in Ghana and identify extent of transparency and disclosure of information. Panel data was obtained from the annual reports of 17 out of the 23 universal banks in Ghana for a period of five years. The data was collected on the return on assets, return on equity, the size of the board, the number of independent directors on the board, the size of the audit committee, the number of executive directors on the board and the size of universal banks in Ghana. The data was entered into Microsoft Excel and transferred to SPSS and Eviews for analysis. The findings of the study reveal that the size of the board of directors has a positive and significant effect on the return on equity of universal banks in Ghana. The number of independent directors has also been demonstrated to have a positive and significant impact on the return on equity of universal banks in Ghana. However, the number of executive directors has a negative and significant effect on the return on equity of universal banks in Ghana. In relation to the return on assets of universal banks in Ghana, all the corporate governance mechanisms had an insignificant effect on the return on assets of universal banks in Ghana. It is recommended that banks in Ghana should reduce the number of executive directors they have on their boards and increase the number of independent directors on their boards.
Description
A thesis submitted to the institute of distance learning, Kwame Nkrumah university of science and technology, Kumasi in partial fulfilment for the degree of master of science in industrial finance and investment