Does Corporate Governance Structures Predict Firm’s Market Value? Empirical Evidence from Ghana

International Journal of Economics and Financial Issues, 2019, 10(1), 52-58.

7 Pages Posted: 9 Jan 2020

See all articles by Helena Ahulu

Helena Ahulu

University of Professional Studies

John MacCarthy

University of Professional Studies, Accra

Date Written: December 4, 2019

Abstract

This paper examined the effect of corporate governance structures on the market value of firms in Ghana. Quantitative data was collected on thirty one firms listed on the Ghana stock exchange from 2009 to 2018 to predict the effect of corporate governance structures on the firm’s market value. Panel data regression analysis revealed that corporate governance structures accounted for 84.9% of the variation of a firm’s market value for the period. Furthermore, the study revealed a significant relationship between chief executive officer (CEO) duality, non-executive director, board size and firm’s profitability and value. The study concludes that firms should separate CEO position from board chairman position to enhance a firm’s profitability and value.

Keywords: Agency Theory, Board Size, Corporate Governance, Duality, Firms

JEL Classification: G32, G34, O16

Suggested Citation

Ahulu, Helena and MacCarthy, John, Does Corporate Governance Structures Predict Firm’s Market Value? Empirical Evidence from Ghana (December 4, 2019). International Journal of Economics and Financial Issues, 2019, 10(1), 52-58.. Available at SSRN: https://ssrn.com/abstract=3505869

Helena Ahulu

University of Professional Studies ( email )

P.O.Box LG149
Legon
Accra
Ghana

John MacCarthy (Contact Author)

University of Professional Studies, Accra ( email )

Accra, 6302 Zug
Ghana

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