The Impact of Corporate Governance and Financial Disclosure on Financial Performance: A study of panel data from 18 Commercial Banks in Ghana

Collins Yaw Kwarteng ORCID iD

Issue: Vol.3  No.12 November 2022  Article 5  pp.572-588
DOI: https://doi.org/10.38159/ehass.20223125 |   Published online 17th November 2022.
© 2022 The Author(s). This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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The paper examines the impact of corporate governance and financial disclosure on the financial performance of banks in Ghana. Corporate governance was measured by three variables: board size, CEO duality, and board composition.  Financial disclosure was also measured by timeliness, bank size, and quality of auditors. Financial performance, as the dependent variable, was measured by return on assets (ROA), and return on equity (ROE).  The study used panel data from 18 commercial banks operating within the Ghanaian banking industry, both listed and unlisted, over a ten-year period (2009 to 2018). A random-effects regression model was used, and the results revealed that board size, timeliness, and quality of auditors were statistically significant and positively related to return on assets. Board composition, however, had a significant negative relationship with return on assets. There was no significant association between bank size and return on assets. Moreover, the findings of the study showed that board size and bank size had a positive and significant relationship with return on equity. Board composition and timeliness were however negative and statistically related to the return on equity. There was no significant nexus between the quality of auditors and return on equity. The study findings place emphasis on the combined effect of corporate governance and financial disclosure on financial performance, particularly within the banking industry in Ghana.

Keywords: Corporate Governance, Financial Disclosure, Financial Performance, Commercial Banks.

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Collins Yaw Kwarteng is currently an Assistant Accountant at the Finance Office, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana. He holds Master of Science (Finance) and Bachelor of Science Business Administration (Accounting); both from KNUST. Collins is a Chartered Accountant and a member of the Institute of Chartered Accountants, Ghana (ICAG). His current research borders on corporate governance and financial disclosure related issues.

Kwarteng, C.Y. “The Impact of Corporate Governance and Financial Disclosure on Financial Performance: A study of panel data from 18 Commercial Banks in Ghana.,” E-Journal of Humanities, Arts and Social Sciences 3, no.12 (2022):572-588.  https://doi.org/10.38159/ehass.20223125

© 2022 The Author(s). Published and Maintained by Noyam Publishers. This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).

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