Board Gender Diversity, Corporate Governance and Bank Efficiency in Ghana: A Two-Stage Data Envelope Analysis (DEA) Approach

Corporate Governance, Forthcoming

27 Pages Posted: 15 Jan 2019

See all articles by David Adeabah

David Adeabah

University of Ghana - University of Ghana Business School (UGBS)

Agyapomaa Gyeke-Dako

University of Ghana - University of Ghana Business School (UGBS)

Charles Andoh

University of Ghana - Business School

Date Written: September 17, 2018

Abstract

This study analyses the efficiency of banks under board gender diversity and examines the determinants of bank efficiency. Using a two-step framework, the first stage result shows that banks experience about 7.9 per cent improvement in their efficiency with board gender diversity on average. The second stage regression results reveal that gender diversity promotes bank efficiency up to a maximum of two female directors on a nine-member board, suggesting a threshold effect on bank efficiency. Board size improves bank efficiency. Board independence is negatively related to bank efficiency. Also, we find that powerful CEOs are detrimental for bank efficiency. Finally, we find that ownership structure, bank size, bank age and loan-to-deposit ratio are important factors affecting bank efficiency. The paper contributes to bank governance structure, namely gender composition of boards and provides an insight for regulators and shareholders to estimate the role of men and women on boards.

Keywords: Board Gender Diversity; Corporate Governance; Bank Efficiency; Ghana

JEL Classification: G21; G30; G32

Suggested Citation

Adeabah, David and Gyeke-Dako, Agyapomaa and Andoh, Charles, Board Gender Diversity, Corporate Governance and Bank Efficiency in Ghana: A Two-Stage Data Envelope Analysis (DEA) Approach (September 17, 2018). Corporate Governance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3312103 or http://dx.doi.org/10.2139/ssrn.3312103

David Adeabah (Contact Author)

University of Ghana - University of Ghana Business School (UGBS) ( email )

Volta Rd
Accra
Ghana

Agyapomaa Gyeke-Dako

University of Ghana - University of Ghana Business School (UGBS) ( email )

Volta Rd
Accra
Ghana

Charles Andoh

University of Ghana - Business School ( email )

P.O. Box LG 78
Legon
Accra, Greater Accra LG 78
Ghana

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