Abstract:
Rural banks play a major role in the socio-economic development of Ghana but face many corporate governance problems including issues with board processes. However, researchers have focused on the agency, stewardship and resource dependency theories for corporate governance studies. These theories provide some insight into corporate governance but they are not useful for explaining board-specific phenomena. This study presents issues related to boards in rural banks in Ghana specifically board appointment, board composition, board decision making and board remuneration employing Bourdieu‘s ―Theory of Practice‖ (1972). A multiple case study approach was employed using interviews to gather data from twenty-five (25) board members from nineteen (19) rural banks in Ghana. With Bourdieu‘s theoretical underpinnings, thematic analysis was used to analyse interview data. Although economic (number of shares), social (relation to board members or organisations of interest to rural banks) and cultural capital (individual skills, experiences and qualifications) influenced board appointments, symbolic capital (all the other forms of capital) had the most influence on the appointment of board members in rural banks in Ghana. The composition of boards and board decision making in rural banks in Ghana was influenced by the habitus developed through the norms, beliefs and culture of the rural banking environment and compliance with the rules and regulation in the rural banking field. Board remuneration of some rural banks were unequally distributed among members because of the doxa that some board members were perceived to be doing more work because of the positions they held. This is likely to lead to symbolic violence when the unequal distribution of remuneration is contested by the board members. Rural banks in Ghana must address issues related to differences in board remuneration because it does not endorse a healthy and safe workplace and also impacts on the boards‘ role in maintaining corporate governance. This research extends the use of Bourdieu‘s theoretical concepts to corporate governance studies specifically boards in rural banks.
