International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Effect of Corporate Governance on Financial Performance of Commercial Banks in Ghana
Alexander Owiredu, Mercy Kwakye

The study examined the influence of corporate governance principles on banks financial performance in Ghana. Data for the study was gathered from the annual reports and the financial statements of the sampled banks from the period 2007-2016. Random effect model was used to analyse the data. This study found a significant positive relationship between board size and financial performance measured by ROA and ROE of banks in Ghana. Additionally, the study found a statistically positive relation between foreign ownership and financial performance measured by ROE and ROE. Interestingly, the study outcome further indicated positive but no statistically relationship between board independence and institutional ownerships and ROA and ROE of the sampled banks in Ghana. Generally, the study supports the view that an improved corporate governance practices is key to increasing firm financial performance.

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