Corporate governance and firm performance in the emerging market: A review of the empirical literature

Abstract

After decades of many corporate scandals and financial meltdowns, the quest for effective corporate governance and firm performance has raised the concern of a lot of academicians, practitioners, and researchers regarding articles written on this issue. This study seeks to review corporate governance and firm performance articles written in Ghana under the author’s keywords in order to fulfill the objective. The goal is to identify the research trend and then to suggest the idea of future research directions. The study has conducted a review of corporate governance research by searching at Scopus and Web of Science research databases from 2006 to 2020 to prepare the list of articles. A comprehensive review of recent corporate governance and firm performance literature is essential because it provides a basis for comparing Ghana’s corporate governance research experience with other emerging economies in other continents. The findings reveal that two keywords on corporate governance analysed in this study – board composition and ownership – have many written articles, while compensation has the least number of articles. However, in the future, gender diversity and audit committee may be investigated since it has received global attention.

An empirical investigation of firm performance through corporate governance and information technology investment with mediating role of corporate social responsibility: Evidence from Saudi Arabia telecommunication sector

“…Consequently, we agree with Antwi et al (2021) that independent directors should be selected from a wide range of different experiences and points of view. There are a lot of family businesses in developing countries, and many of them only allow family members to hold high management roles, which reduces the requirement of having independent board members.…”

“…Accounting frauds are more likely to happen within a firm that has a poor governance structure, and this is especially true for organizations that are on the smaller side. The insufficiency of existing corporate governance legislation, principles, structures, and processes to prevent these types of frauds has stoked disputes over the effectiveness of these governing mechanisms ( Antwi et al, 2021 ).…”

Corporate Governance Compliance and Firm Performance: Evidence from Publicly Listed Firms in Ghana

“…Most of the changes are due in part to corporate scandals that began in the 1980s and late 1990s in the United Kingdom (UK), the United States of America (USA), and some Asian countries (Ahialey & Kang, 2019;Oliveira et al, 2012). According to Antwi et al (2021), CG has become a subject of discussion over the decades because of myriad corporate failures. Therefore, almost every country has established CG institutions, outlined best practices, and attempted to impose appropriate governance structures (Prusty, 2009).…”

Meta-Analytic Evidence for Board Characteristics as Correlates of Firm Performance Among Saudi Arabian Businesses

“…Several recent meta-analyses (e.g., Makkonen, 2022;Prashar and Gupta, 2021;Rhoades et al, 2000;Zubeltzu-Jaka et al, 2019) have highlighted the central role of board composition in corporate governance. Antwi et al (2021); Parente and Filho (2020) observed that a board of directors is one of the most studied constructs in corporate governance research as an antecedent of several important business outcomes. Six meta-analytic reviews show that gender, size, independence, and director status are some of the most commonly used indicators of board characteristics (Deutsch, 2016;Endrikat et al, 2020;Makkonen, 2022;Prashar and Gupta, 2021;Sierra-Morán et al, 2021;Zubeltzu-Jaka et al, 2020).…”