Abstract:
This study was to assess the relationship between corporate governance and firm
performance of banks in Ghana. It provides insight into the research questions; What
is the relationship between board size and financial performance of banks, the
relationship between board gender diversity and financial performance of banks in
Ghana and the relationship between board composition and financial performance of
banks in Ghana. This research was conducted using a causal research design and a
quantitative research methodology. A purposive sampling technique was employed to
select a sample of nine (9) listed commercial banks for the study. Financial statement
of the listed banks from 2010-2020 was used for data analysis. Four variables were
employed in this study with financial performance as the dependent variable and
board size, board structure and board gender diversity as independent variables. A
panel regression model was utilized to answer the various research questions. The
findings indicates that there is a positive significant relationship between board size
and financial performance and also having a board with a balanced gender
composition positively influences the profitability of banks. The findings also
revealed that there is a positive significant connection between board composition and
the financial performance of banks. The study recommends that financial institutions
should consciously evaluate and, if necessary, optimize their board size to increase
effectiveness and efficiency. The study also recommends that financial institutions
should actively prioritize and promote gender diversity and also diversified their
board by incorporating non-executive directors which will contribute to a more wellrounded
and innovative decision-making process within the board.
Description:
A dissertation in the Department of Applied Finance and Policy Management,
School of Business, submitted to the School
of Graduate Studies in partial fulfillment
of the requirements for the award of the degree of
Master of Business Administration
(Finance)
in the University of Education, Winneba
DECEMBER, 2023