Corporate governance and the performance of manufacturing firms in Ghana: Does ownership structure matter?

Sarpong‐Danquah, Beatrice; Oko-Bensa-Agyekum, Kwasi; Opoku, Emmanuel

doi:10.1080/23311975.2022.2101323

Cited by 16 publications

(3 citation statements)

References 54 publications

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“…Bank age is measured in terms of the Natural logarithm of firm age since incorporation [51,51,103,179,220,227]. But, Sarpong-danquah et al [180] and Hamdan, [80] measured it with the total number of years a firm has been in existence. Older firms are high IC performers [29,101], in their study, found that firm age has a negative and insignificant effect on the intellectual capital efficiency of firms.…”

Section: Control Variablesmentioning

confidence: 99%

Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

Assfaw,

Sharma

2024

Futur Bus J

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Purpose The current study aims to explore the impact of corporate governance (CG) mechanisms, as measured by board size, board meeting frequency, board gender diversity, number of board subcommittees, board remuneration, size of audit committee, and audit committee meeting frequency, on bank intellectual capital (as calculated by the modified value-added intellectual coefficient (M-VAIC) and its components (human capital efficiency (HCE), structural capital efficiency (SCE), and relational capital efficiency (SCE)). Design/methodology/approach Panel data is extracted from the financial and other internal reports of 14 commercial banks and the National Bank of Ethiopia for the period 2011–2022. A two-step system generalized method of moments (2SYS-GMM) was used to account for the unobserved endogeneity and heteroscedasticity problems. Findings The empirical findings suggest that board size and board meeting frequency have a negative and significant impact on all IC performance measures. Besides, audit committee size has a negative and significant effect on HCE, SCE, and M-VAIC of the banking industry in Ethiopia. Moreover, board remuneration has a significant positive relationship with IC efficiency (HCE, SCE, and M-VAIC). Also, audit committee meeting frequency has a positive and significant effect on the HCE of banks. However, board gender diversity and the number of board subcommittees have not made statistically significant contributions to IC performance. Research limitation/implication The study is limited in its use of seven dimensions of CG and future studies can use other alternative accounts for CG variables. Next, this study applies only to commercial banks; hence, future studies can include other financial as well as non-financial organizations such as insurance companies, microfinance institutions, manufacturing, and other sectors. Practical implications This study contributes to helping the regulators and practitioners of the banking industry improve the existing standards and guidelines for CG practices to strengthen their IC performance. The findings may also give input for policymakers to integrate the intellectual capital in the decision-making process for policy formulation and implementation for the establishment of a robust banking sector. Originality/value Considering the modified value-added IC coefficient (M-VAIC) and 2SYS-GMM models, this research is the first study to analyze the relationships between CG and banks’ IC in Ethiopia.

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Section: Control Variablesmentioning

confidence: 99%

Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

Assfaw,

Sharma

2024

Futur Bus J

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“…However, the recent occurrence in the Ghanaian banking sector threatens sustainability. Though the crisis was mostly attributable to weaknesses in corporate governance mechanisms of the banks, some earlier studies on corporate governance have extensively studied the relationship with corporate performance (Sarpong-Danquah, Oko-Bensa-Agyekum & Opoku, 2022;Tornyeva & Wereko, 2012& Kyereboah-Coleman, 2007 but relatively few works have explored the corporate governance and corporate sustainability link although corporate sustainability has rapidly evolved in the world of business. Some empirical works have examined the corporate governance and corporate sustainability nexus in various sectors and geographical jurisdictions (Erin et al, 2022;Tjahjadi et al, 2021;Munir et al, 2019;Aras & Crowther, 2008;Disli et al, 2022;Ntim & Soobaroyen, 2013;Masud et al, 2018;Burke et al, 2019;Adegboye et al, 2020;Mahmood et al, 2018;Janggu et al, 2014;Hussain et al, 2018;Shrivastava & Addas, 2014, Walls et al, 2012Amran et al, 2014;and Naciti, 2019).…”

Section: Introductionmentioning

confidence: 99%

Examining the moderating role of ownership structure on corporate governance and bank sustainability: A post banking sector crisis perspective

2024

EJBM

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The aim of the study was to examine the corporate governance and corporate sustainability nexus and further examine the moderating role of ownership structure on corporate governance and bank sustainability from the post banking sector crisis perspective. The study sample constituted all the 23 banks licensed by Bank of Ghana to operate in Ghana. Data was obtained through the administration of questionnaires to key personnel of the banks. 276 key management were selected using purposive sampling techniques. The study adopted Partial Least Square Structural Equation Modelling (PLS -SEM) using SMART-PLS software in analyzing data obtained. The empirical results of the study pointed out that, corporate governance of bank has significant positive effect on bank sustainability. It further revealed that, shares ownership structure does not moderate the relationship between corporate governance and bank sustainability nexus. Implications of the study from the theoretically perspective, is the contribution it makes to literature of the stakeholder and paradox theories. Practically, in devising corporate sustainability strategies, management will use the findings of this study as a guide. The outcome will also guide policy makers in future policies on governance and sustainability especially in an era where sustainability is gaining grounds in the sector amidst the adoption of International financial reporting standards for sustainability which will be effective across all sectors in Ghana including the banking sector soon. The study is limited to the banking sector in Ghana, though sustainability is encouraged in all sectors of the economy and across the globe. It is therefore recommended that, future studies should explore other sectors of the Ghanaian economy and replicate the study in other geographical jurisdictions.

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“…However, the use of accounting ratio analysis as a standard measure of efficiency can be very misleading. Data envelopment analysis approach (DEA), which uses the non-parametric approach for measuring banking efficiency, has received much attention by researchers (Thaker et al 2022;Blankson et al, 2022;Sarpong-Danquah et al, 2022;Aboagye et al 2012;Yang, 2009). For instance, a recent study by Thaker et al (2022) employ the DEA and random forest regression approach to examine corporate governance and bank efficiency in India and found that corporate governance play a significant role particularly in new profit efficiency.…”

Section: Introductionmentioning

confidence: 99%

Board dynamics, dividend pay-out policy and banking efficiency in an emerging market context

Sasu

Kuttu

Agbloyor

et al. 2023

IJBEM

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In this paper, we examine the interactive role of board dynamics in explaining the link between dividend pay-out policy and banking efficiency. Prior to that, it investigates whether board dynamics contribute to dividend pay-out policy. The study applies data from 23 Ghanaian banks over the period 2010-2020. The panel-truncated regression was used to examine the interaction effect of board dynamics and dividend pay-out on banking efficiency. We found that the banks in Ghana do not fully utilise their inputs to be able to operate on their optimal efficiency. We found that board independence, board size and tenure of CEO are important determinants of dividend pay-out policy. Further, free cash flow' hypothesis explains a negative impact of board dynamics and dividend pay-out policy on banking efficiency. The current study makes novel contribution to the existing literature by establishing that board dynamics play a strong interactive role in the relationship between persistent dividend pay-out policies and banking efficiency.

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Corporate governance and the performance of manufacturing firms in Ghana: Does ownership structure matter?

Cited by 16 publications

References 54 publications

Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia

Examining the moderating role of ownership structure on corporate governance and bank sustainability: A post banking sector crisis perspective

Board dynamics, dividend pay-out policy and banking efficiency in an emerging market context

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