Abstract:
ABSTRACT
The study assessed the impact of corporate governance on performance as well
as regulatory compliance of banks in Sub Saharan Africa. The study adopted
the quantitative method approach. The quantitative data was collected from the
annual report of the banks from 2011 to 2022. The study used the system
generalized method of moment two step estimator with 41 listed banks from
five Sub Sahara African countries. The results revealed that board size, board
independence, audit committee, board diversity, managerial ownership and
ownership concentration predict performance when measured with return on
asset. The study also found that board size, board independence, audit
committee, board diversity, institutional ownership and ownership
concentration were predictors of performance with net interest income. All the
variables were also predictors with the exception of institutional and
concentrated managers with return on equity The study also revealed that board
size, board independence, audit committee, board diversity and managerial
ownership were predictors of regulatory compliance. With respect to the
moderating effect of type of bank on the relationship between corporate
governance and performance, type of bank significantly moderates the
relationship between corporate governance and return on asset. Apart from
institutional ownership which was significant, the moderating effect of type of
bank were all insignificant on the relationship between corporate governance
and regulatory performance. The study concluded that corporate governance
predict performance as well as regulatory performance. It is recommended that,
regulators should from time to time, modify and update the corporate
governance guidelines to meet the current trend of business and best practices