Abstract:
Capital structure has been proffered to influence the performance of companies whilst
the corporate governance measures ensured by companies can also influence the
performance of companies. This study sought to investigate the relationship between
capital structure and financial performance of companies, to find the relationship
between corporate governance and financial performance of companies and to
examine whether corporate governance moderate the capital structure-performance
relationship. The study used causal research design and quantitative research approach.
Population for the study was 38 listed companies on the GSE, purposive sampling
technique was used to select 11 companies.
Multivariate regression method through ordinary Least square estimation was
employed. The result showed that capital structure has positive relationship with
financial performance. On the other hand, corporate governance mechanisms such as
BS, BC, BGD has positive effect on financial performance. Further, the study
observed that corporate governance significantly moderates the capital
structure-financial performance nexus and in a negative direction except BCTDTA
which moderated the relationship in a positive direction. The study recommends
industrial players to ensure appropriate corporate governance measures, ensure right
combination of equity and debt in their capital mix since its influences financial
performance.
Description:
A dissertation in the department of Applied Finance and Policy Management,
School of Business, submitted to the School of
Graduate Studies in partial fulfilment
of the requirements for the award of the degree of
Master of Business Administration
(Finance)
in the University of Education, Winneba
