CORPORATE GOVERNANCE AND FIRM PERFORMANCE OF LISTED FINANCIAL INSTITUTIONS ON THE GHANA STOCK EXCHANGE

ABSTRACT The study investigated the influence of corporate governance on firm performance using listed financial institutions on the Ghana Stock Exchange. The study also investigated the influence of board composition on firm performance. Ex-post factor research design was adopted for the study and purposive sampling was used in selecting sample for the study which comprises all financial institutions listed on Ghana Stock Exchange. The study revealed that there is a positive and significant relationship between managerial/insider ownership and firm performance. It was also discovered that there is statistically significant positive relationship between board size and firm performance. In relation to board composition (independence) and firm performance, the result was not statistically significant and negative. Finally, it was discovered that audit committee both in size and independence are important ingredient to fostering accountability and transparency which are the lubricants and catalyzing agents for firm’s performance. It was recommended that listed corporations should diversify shareholding as a way of attracting diverse skills and competencies among shareholders and more importantly, entrenchment and incentive of managers should be balanced so as not to allow them pursue self interest to the detriment of the corporation.