Abstract:
ABSTRACT
The study examined the effect of corporate governance structures such as
board size, board composition, dual chairmanship, and audit committee on the
financial performance of commercial banks in Ghana. Compliance with
corporate governance codes and guidelines, as well as trends in practice, were
also examined. For four years, from 2016 to 2019, the study collected
secondary data from annual reports and financial statements of a sample of
nine commercial banks. The data were entered into excel and exported to
STATA, where they were analyzed using random effect models and
descriptive statistics such as mean, percentages, and frequency. The findings
indicate that bank compliance with corporate governance rules continues to
improve, with average compliance increasing from 64.4 percent in 2017 to
75.7 percent in 2019. Board size, composition, and chairman duality all have a
negative but statistically insignificant relationship with ROE, ROA, and DY,
according to the random effect regression model. In all three models, the audit
Committee has a positive and statistically significant relationship with
performance. The study recommends that the Bank of Ghana and the Ghana
Securities and Exchange Commission maintain their current corporate
governance enforcement to ensure compliance at 100%. Banks should ensure
that their audit committees are independent and equipped with the necessary
logistics and personnel to function effectively
