Corporate Governance and Firm Performance: An Empirical Analysis of Manufacturing Listed Firms in Ghana
Corporate Governance and Firm Performance: An Empirical Analysis of Manufacturing Listed Firms in Ghana
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Date
2018-07-01
Authors
Gyimah, Prince
Sarpong-Danquah, B
Afriyie, R. O
Asiamah, A
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Publisher
Sciedu Press
Abstract
This paper assesses the effect of corporate governance on the financial performance of manufacturing firms in a
developing country. Specifically, the paper investigates whether gender diversity, board independence, and board
size affects return on asset (ROA) and return on equity (ROE) of manufacturing listed firms in Ghana. We use the
generalized least squares (GLS) panel regression model to analyze the dataset of 11 listed manufacturing firms from
2009-2013. Our result reveals an insignificant representation of women on boards. Also, the empirical result shows
that board independence and board gender diversity have significant positive effect on ROE and ROA. However,
there is no statistical significant relationship between board size and firm performance (ROE and ROA). We suggest
that manufacturing firms should appoint female board members as well as outside directors on their boards as this
can make significant contribution to firm’s performance. Our study provides the first comprehensive explicit
exposition of corporate governance-performance nexus using data from the manufacturing sector in Ghana.
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Citation
Sarpong-Danquah, B., Gyimah, P., Afriyie, R. O., & Asiamah, A. (2018). Corporate governance and firm performance: An empirical analysis of manufacturing listed firms in Ghana. Accounting and Finance Research, 7(3), 111-118.