Abstract: The study estimated the impact of corporate governance on the performance (ROA and ROE) of listed manufacturing firms in Ghana. Quantitative, descriptive and correlational research approaches were adopted for the study. The annual reports of the listed manufacturing companies from 2011 to 2016 were used for the study. The population for the study is made up of all the fourteen Ghanaian listed manufacturing companies as at 31st December, 2016. Ordinary Least Square (OLS) regression model was used to estimate the level of impact of corporate governance practices on the performance (ROA and ROE) of listed manufacturing firms in Ghana. The empirical evidence obtained indicated that three of the independent variables: Size of Board, number of Independent Directors and the presence of Audit Committee had positive and insignificant impacts on ROA. Additionally, the level of impact of Management Ownership on the ROA of the firms was positive and significant. However, all the independent variables: Size of Board, number of Independent Directors, the presence of Audit Committee and Management Ownership had positive and insignificant impacts on ROE. With regards to the control variables, the results indicate that the age of the firms positively and significantly impacts on ROA and ROE. Additionally, the evidence suggested that the size of the firms had a positive impact on both ROA and ROE, however, the level of impact of the size of the firms on ROA was insignificant. Additionally, the risk levels of the firms has a negative and significant impact on both ROA and ROE. Overall, the study provides evidence that there is a positive and insignificant impact of corporate governance on both ROA and ROE of the listed manufacturing firms in Ghana.
Keywords: Corporate Governance, Board Size, Ghana Stock Exchange, Firm Performance, Return on Assets, Return on Equity.
Title: The Impact of Corporate Governance Practices on Performance of Manufacturing Firms on the Ghana Stock Exchange
Author: LAZARUS LANQUAYE LAMPTEY
International Journal of Management and Commerce Innovations,
ISSN 2348-7585 (Online)
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