Council structural composition and functions, audit quality, agency problems and monitoring costs and corporate performance of Ghanaian public universities

Abstract

The increased number of reported cases of corporate scandals, unilateral decisions by many corporate heads, countless media reports alleging wrongful conducts and acts by some Vice Chancellors, and issues of conflicts of interest against committees of many councils continue to suggest a prevalence of agency problems in our institutions of higher education. Thus, suggesting the need to strengthen corporate governance practices in institutions, especially the public universities toward resolution of agency problems. To provide knowledge, this study employed multi-theoretical lens to examine the governance practices, and related issues among the public universities using mixed methods design to obtain data from 20 out of 25 Ghana Tertiary Education Commission registered public and technical universities in Ghana. Overall, this study validates the path direction structural relationships among latent governing councils’ structural composition and diversity, monitoring functions, audit quality, agency problems and monitoring costs, and corporate performance variables with data from the Ghanaian public universities. The results confirmed that most of the assertions underlying the conceptual framework of this study as illustrated in Figure 1 except those assertions relating to councils’ functions. The results also confirmed the mediating role of auditing on corporate governance practices, agency problems and monitoring costs, and corporate performance. Consequently, mandatory orientations, and training of council members prior to induction, and while in office have been recommended for the action of Ghana Tertiary Commission and the Ministry of Education. Further research that examines councils’ monitoring functions and agency problems, and corporate performance have been suggested.