Corporate governance in banks: impact of board attributes on banks performance
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Date
2020
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Publisher
African J. Accounting, Auditing and Finance
Abstract
The study examines the impact of the board of directors’ composition on
firm performance in the Ghanaian banking industry. Using the GMM, fixed and
random effect econometric models, the presence of independent non-executive
directors (INEDs) on boards are found to significantly and positively contribute
to higher bank performance in terms of return on assets. Board size is also
found to have significantly influenced banks' performance positively concerning both return on assets and return on equity, but negatively affects the net
profit margins of banks. The study further establishes that board members
political attachment has a profound adverse influence on firm performance
particularly on net interest margin. These findings provide further insights into
the impact of board attributes on firm performance in the banking industry,
especially in a developing and under-researched context. Research and practical
implications are discussed.
Description
Research Article
Keywords
corporate governance, board composition, independent directors, firm performance, Ghana
Citation
Nyuur, R.B., Ofori, D.F. and Dedzo, B.Q. (2020) ‘Corporate governance in banks: impact of board attributes on banks performance’, African J. Accounting, Auditing and Finance, Vol. 7, No. 1, pp.24–41.