Corporate governance and performance of medium-sized enterprises within the Sekondi-Takoradi metropolis

Abstract

Over the past few decades, corporate governance has been a subject of mounting debate and has received considerable attention in the public domain of both developed and developing countries. Corporate governance is primarily due to the various past financial scandals, as well as, the major surprising collapse of corporate bodies across the globe. The study, therefore, assessed the relationship between corporate governance and the performance of Medium Enterprises in the Sekondi-Takoradi Metropolis, using primary data from medium sized enterprises in Sekondi-Takoradi within the Western Region of Ghana. The study used the quantitative approach and administered 260 questionnaires. Results from the quantitative part were presented in tables, graphs and chart. The results revealed that, among the determinants: attraction of investment capital, sufficient and reliable information and disclosure of information to stakeholders were the key determinants of corporate governance of medium-sized enterprises. Moreover, board size and CEO duality had positive and moderate significant effect on firm performance while ownership structure had a weak effect on the performances of the medium-sized enterprises within the Sekondi-Takoradi metropolis. It is therefore, management of medium-sized enterprises should include corporate governance in their overall strategic plans. There is an urgent need to train and educate owner/managers of medium-sized enterprises about the importance of conforming to corporate governance traditions and principles which includes board size