Abstract:
This study investigates the effect of board gender diversity and risk-taking behavior on
the performance of Ghanaian-resident universal banks with a moderating role of bank
ownership type. The study is guided by specific objectives to (i) assess the effect of board
gender diversity in bank performance (ii) ascertain the effect of risk-taking behaviors on
bank performance and (iii) assess the moderating role of bank ownership in the risk taking behaviour-bank performance relationship. A 12-year secondary data was obtained
from 15 Ghanaian-resident universal banks. Having employed a quantitative research
approach with Arellano-Bond Generalized Method of Moment (GMM) estimation
technique, the results indicate that board gender diversity has positive effect on bank
profitability whereas risk-taking behaviour negatively impacts bank profitability. The
result further evinces that bank ownership significantly moderates the risk-taking
behaviour-bank profitability nexus. The study concludes that high female representation
on board is essential for bank success. The study also concludes that banks with higher
risk appetite tend to incur huge losses. Conclusion was also made that bank ownership is
essential in shaping the risk behaviours of banks in Ghana. The study recommends that
financial institutions should try and diversified their board to include more females as it
helps to increase profitability. Local banks should proactively seek opportunities for
knowledge sharing and collaboration with foreign-owned banks. Additionally,
policymakers should consider reviewing regulations to encourage collaboration and
information exchange between foreign-owned and local banks, aiming to enhance
operational efficiency and sector stability. Banks should also implement robust risk
assessment processes, stringent credit policies, and investment strategies that prioritize
stability over excessive risk. The central bank should increase their focus on enhancing
and enforcing risk management regulations for bank.
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