ghanaopendata/ghanaian-research-english huggingface dataset:
Corporate Governance and Restructuring Activities Following Completed Bids

Manuscript Type: EmpiricalResearch Question/Issue: We examine the extent to which effective corporate governance impacts three restructuring choices following completed acquisitions - significant adjustment to workforce; sale of subsidiaries; and further acquisitions. We also investigate the relative firm performance in the post-restructuring period for the three respective options examined.Research Findings/Insights: Based on a sample of 649 US firms between the period 1991 and 2009, we find support for the assertion that corporate governance impacts layoffs and further acquisitions. We, however, find no evidence to support a measurable governance effect on divestiture likelihood. In examining the post-acquisition performance following restructuring, we find no significant difference in performance between acquirers that made further acquisitions and those that did not. There is evidence, however, suggesting that acquirers who laid off workers and those that divested assets performed significantly poorer relative to a comparable group of acquirers.Theoretical/Academic Implications: This study adds to the empirical literature on the relation between governance and restructuring choices. We provide evidence on the impact of governance on restructuring choices that has not been documented in the academic literature. An implication of this study is that performance in post-restructuring period would not necessarily be enhanced even when governance exerts positive influences on restructuring choice.Practitioner/Policy Implications: Our empirical results demonstrate the relative importance of corporate governance in organizational strategic choices. This study offers insights to stakeholders interested in enhancing governance structures to influence restructuring decisions following completed bids. © 2010 Blackwell Publishing Ltd.

Source: UG
Corporate Governance and Transparency: Evidence from Stock Return Synchronicity

Purpose – The purpose of the study is to examine the influence of corporate governance on the flow of firm-specific information in an emerging market. Design/methodology/approach – Synchronicity is estimated under assumptions of contemporaneous and non-contemporaneous relationship between individual stock returns and the market return. Possible thin-trading effect is also corrected using the Dimson’s Beta approach to estimate synchronicity. In the main empirical model, both the Panel-Corrected Standard Errors and the Generalized Least Square estimations were used to provided robust evidence of governance influencing transparency. Findings – Corporate governance was found to broadly influence the release of firm-specific information in a relatively opaque market through the information environment. However, no evidence in support of the “auditor-reputation effects” theory was found. As well, CEO duality does not create an individual powerful enough to reduce the monitoring role of boards. We further document the presence of noise trading on the Ghana Stock Exchange. Practical implications – This study suggests that specific corporate mechanism practices have implications for stock selection in a relatively high information asymmetry Capital Market. Investors require transparency; hence, firms with governance mechanisms that elicit such transparency are likely to attract investors. Originality/value – This study is the first to examine the relationship between governance and transparency while using stock return synchronicity as a proxy for transparency in an emerging Ghanaian Capital Market.

Source: UG
Corporate governance and value relevance of financial information: Evidence from the ghana stock exchange

Purpose – This study aims to look at how corporate governance, specifically internal mechanisms of corporate governance, affects the value relevance of reported accounting earnings of listed firms on the Ghana Stock Exchange. Design/methodology/approach – The study used the Ohlson valuation model with a panel dataset, employing pooled regression analysis with random effects. Findings – The findings indicate that net asset value per share is value relevant on the Ghanaian market, and even more so when the board size is small or the CEO also doubles as the board chair. Board independence as captured by the percentage of non-executive directors on the board is relatively irrelevant in the market valuation of shares, and when relevant has a negative effect. Originality/value – The value relevance of accounting information on the Ghanaian financial market, by implication, requires that the necessary rules and supervision regarding financial reporting must be provided to ensure that the information that reaches the investing public is therefore a true reflection of the underlying economic value of firms, so that capital allocation decisions based on these sources will be efficient.

Source: UG
Corporate governance in banks: impact of board attributes on banks performance

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.

Source: UG
Corporate governance mechanisms and accounting information quality of listed firms in Ghana

This paper analyses the implications of internal corporate governance mechanisms for accounting information quality which uses discretionary accrual as a proxy. The empirical research is based on a sample of 20 non-financial institutions listed on the Ghana stock exchange (GSE) for an 11-year period, 2003 to 2013. The results show that the operational earnings are more persistent than operational cash flow which suggests that in predicting future values from current ones, operational earnings gives a better output in looking at the long-term sustainability aim of a firm, than operational cash flows. The results also suggest that the board independence and foreign ownership constraint opportunistic managers to manipulate the earnings leading to a higher level of accounting information quality. By extension, these results have important policy implications for regulators in assessing the effectiveness of corporate governance on earnings quality.

Source: UG
Corporate governance mechanisms and firm performance in a developing country

Purpose – The purpose of this study is to examine the influence of corporate governance mechanisms recommended by the Securities and Exchange Commission (SEC) of Ghana on firm performance as measured by accounting-based ratios (return on assets, return on equity and earning per share) as well as market-based measure (Tobin’s Q) among listed Ghanaian companies from 2006 to 2018. These mechanisms are: board composition (board size, inside directors and outside directors), board committees (audit, remuneration and nomination), chief executive officer (CEO) duality/separation, board meetings and shareholder concentration. Design/methodology/approach – The study used panel regression analysis of data from 38 listed firms in Ghana from 2006 to 2018 to test how each corporate governance variable initiated by the SEC of Ghana contributed to firm performance. Data were extracted from the annual reports of listed companies. Findings – The study found that the presence of both insiders and outsiders on the corporate board improved financial performance. Similarly, board size, frequency of board meetings and shareholder concentration/ownership structure generally had a positive impact on financial performance. However, the presence of board committees generally had a negative impact on financial performance while CEO duality had no impact on financial performance. Practical implications – The study contributes to the understanding of how good corporate governance practices affect firm performance for both academics and particularly Ghanaian policymakers. Originality/value – This study provided new findings to bridge the gaps in the general corporate governance literature relative to the lack of consensus on financial impacts of corporate governance mechanisms. The finding contributes to knowledge by providing new and original evidence that some current corporate governance mechanisms are not effective in minimizing the agency problem in a developing setting. Furthermore, the authors anticipate that the outcomes of this research, which so far is the most comprehensive study in the Ghanaian context in terms of the coverage of corporate governance mechanisms specified by the SEC of Ghana, can significantly shape corporate governance discourse, practices and policies in Ghana, particularly and in other developing countries generally to improve financial performance and corporate sustainability.

Source: UG
Corporate governance structures and bank risk taking behaviour: evidence from Africa using income bracket approach

The study sought to determine the effect bank level corporate governance have on risk taking behaviour of banks in Africa and its income bracket groupings using a two-step GMM panel dataset of 215 banks from 29 African countries. The results show that while board size and CEO duality significantly reduce risk taking behaviour of banks in Africa, extreme increase in board size increased risk taking behaviour of banks in Africa. Furthermore, the results reveal that the effect of bank level corporate governance structures on bank risk taking behaviour varies greatly across banks in different income brackets in Africa. This implies that the effects of corporate governance structures are shaped by contextual settings and effects. The policy implication from these findings are that bank regulators must institute corporate governance frameworks that help shape risk taking behaviour of banks which will enhance financial institution and sector soundness and stability. Also, bank ownership and management must be careful in the selection and implementation of bank corporate governance structures since not all the corporate governance structures induce the stability of banks given the income bracket a bank finds itself.

Source: UG
Corporate governance, disclosure and foreign share ownership on the Ghana Stock Exchange

Purpose: The purpose of this paper is to examine the interaction between corporate disclosure and foreign share ownership on the Ghana Stock Exchange (GSE). Design/methodology/approach: The paper follows the trinary procedure of Aksu and Kosedag and uses the Standard & Poor's transparency and disclosure items in the construction of the disclosure index. Therefore, the paper adopts a panel data analysis covering a period from 2002 to 2007 using the seemingly unrelated regression approach. Findings: The results indicate a statistically significant interaction between corporate disclosures and foreign share ownership among the sample firms. The market value of equity and market-to-book value ratio is documented; free cash flow and financial leverage have statistically significant relationships with foreign share ownership. Originality/value: This is the first of its kind in the country that considers the impact of corporate governance and disclosure on foreign share ownership despite the numerous studies carried out on the GSE. © Emerald Group Publishing Limited.

Source: UG
Corporate liquidity management of listed firms in Ghana

Purpose The purpose of this paper is to examine corporate liquidity management of companies listed on the Ghana Stock Exchange (GSE) with the aim of ascertaining the determinants of corporate liquidity holdings. Design/methodology/approach The paper adopts a dynamic panel model where a lagged dependable variable is introduced as an explanatory variable. Annual data from the annual reports and financial statements of the firms together with the ITGSE Factbook/IT are used in the gathering of data spanning 1991-2007. The Arrellano-Bond estimator is used which incorporates the Sargan test for over identification. Findings Leverage is found to be not significant to Ghanaian-listed firms' liquidity demand perhaps due to the developmental stage of the financial market. However, liquidity is found to be statistically significantly influenced by a target liquidity level, size of the firm, return on assets and net working capital. Originality/value This is the first of its kind in the country despite the numerous studies carried out on the GSE. © 2009 Emerald Group Publishing Limited. All rights reserved.

Source: UG
Corporate reputation and retail bank selection: the moderating role of brand image

Purpose – Even though scholars have proposed multiple dimensions to measure corporate reputation, the relationship between these dimensions and service provider selection has received a dearth of research. Moreover, the moderating role of brand image on this relationship has hardly been considered. The purpose of this paper is to fill these gaps in the literature. Design/methodology/approach – The study employed a quantitative approach, collecting data from 540 retail bank customers using surveys. Results were analyzed using structural equation modelling in AMOS. Findings – The study found out that emotional engagement, corporate performance, customer centricism and service quality directly predicted customer selection of retail banks in Ghana. The results further indicated that brand image moderates the relationship between social and ethical engagement, which was not directly significant and bank selection. Practical implications – The findings of the study indicate that some of the dimensions of corporate reputation have a direct impact on bank selection by customers, and that brand image could also be used to improve social and ethical dimension of corporate reputation to ensure bank selection by retail customers. The study thus provides practical guidelines for managing corporate reputation to achieve retail bank selection in Ghana. Originality/value – The paper provides support to some of the prior studies on corporate reputation in the retail banking sector. Thus, the study provides useful insights into how corporate reputation can be managed to ensure service provider selection by retail bank customers.

Source: UG
Corporate Social Responsibility activity reportage on bank websites in Ghana

Purpose – The concept of corporate social responsibility (CSR) has witnessed a resurgence in the management literature in recent years. This might be due to a renewed focus on corporate governance and ethical practices of companies the world over. This current study seeks to focus on how banks operating in Ghana communicate their CSR programmes and intentions via their corporate websites. Design/methodology/approach – A conceptual framework was adapted from the extant literature and was used as the basis of a content analysis of 16 banks in Ghana. This paper adopts a qualitative research approach drawing upon available information from the websites of these 16 banks. Findings – One of the banks that had won the most CSR awards at the Ghana banking awards had the poorest CSR communication content on its corporate website. It was also noted that banks that had never won a CSR award previously seemed to have a better organised structure in respect of their CSR activities on their websites. These findings clearly demonstrate the challenges that sometimes exist in transferring bricks-and-mortar organisational capabilities to online environments. Originality/value – Studies focusing on online CSR communications in emerging market contexts are almost non-existent and this study makes an important contribution in not only addressing this imbalance, but more importantly in improving bank marketing practices in Ghana.

Source: UG
Corporate Social Responsibility (CSR) Perspectives of Leading Firms In Ghana, Corporate Governance

Purpose – Corporate social responsibility (CSR) research has blossomed in this new millennium. This has been due to: the increasing concern expressed by policy makers about corporate social; responsibility; the pressure exerted on firms to demonstrate high ethical standards; and for developing countries, the increasing demands on their firms exporting to Europe and other western countries to document adherence to high ethical standards in order to be competitive. This study sought to ascertain and document the extent of recognition, nature and content of socially responsible actions by firms located in Ghana. Design/methodology/approach – The study used a sample of companies listed in the Ghana Club 100 database, an annual ranking of the most prestigious firms in Ghana. The study adopted an in-depth, exploratory and comparative approach in examining the CSR issues from the perspectives of local versus internationally-connected firms in Ghana. Findings – The key findings of the study were that, although local companies are familiar with the concept and do, indeed, practice some amount of CSR, they subscribe less to the contemporary notion of CSR; they are less strategic, less moral and ethical in their approach to CSR. Thus, internationally-connected Ghanaian firms seem to have a better grasp of the various dimensions of CSR and how these could be used to business and strategic advantage. Research limitations/implications – Future research indications might be the fashioning of a CSR typology for Ghanaian firms and an investigation of the relationship between CSR and financial performance. Originality/value – Reports findings in the first nation-wide study carried out in the area of CSR and will interest academics and practitioners working in and on the areas.

Source: UG
Corporate Social Responsibility (CSR) practices of Foreign and Local Companies in Ghana

This article reports a comparative study of the key motives underlying corporate social responsibility (CSR) practices of foreign and local firms operating in Ghana and the societal as well as business outcomes of these practices. The results show that while the CSR decisions of foreign firms are mainly guided by legal prescriptions, those of their local counterparts are guided mostly by discretionary and social considerations. The socially oriented CSR practices of the local firms are consistent with cultural expectations in Ghana that those with extra resources should support the less privileged members of the society. But the difference in the degree of importance that the two groups of firms attach to discretionary motives for their CSR practices is not statistically significant. The article also discusses the policy, strategy, and research implications of the findings

Source: UG
Corporate Social Responsibility (CSR) reportage on websites and in annual reports: The Case of CAL Bank in Ghana Corporate Ownership and Control

Purpose: The management literature in recent years have been paying attention to the concept of corporate social responsibility. This could be attributed to stakeholder concerns of ethical practices of companies globally. This study focuses on how an indigenous Ghanaian bank reports its CSR activities online and in the annual reports. Design/methodology/approach: A conceptual framework was adopted from the extant literature and used as the basis of comparative content analysis of social responsibility data on CAL Bank's website, www.calbank.net and the annual reports. We compared the social responsibility reportage on the website with the social responsibility reportage from the annual reports of the Bank from 2003-2009. We also conducted in-depth interviews with senior management of the bank to develop a deeper understanding of CAL Bank's online CSR reportage. Findings: There seems to be a consistency between the annual reports and the corporate website CSR reportage of the bank. There however seems to be under-reportage of CAL Bank's CSR activity online as their CSR online reportage focuses mainly on external disclosures. It also came to light that the bank's CSR reportage is fragmented and is not integrated into a marketing communication plan. These findings demonstrate the challenges the bank faces in coordinating and integrating its marketing communication activities. Originality/value: Studies on online CSR communications within developing countries context is limited. This study does not only help bridge the gap but contributes to improving bank marketing practices in Ghana as well.

Source: UG
Corporate Social Responsibility and Business Value of Multinational Companies: Lessons from a Sub-Saharan African Environment

The issue of corporate social responsibility (CSR) as an approach for businesses to independently take actions that lead to better levels of societal development as well as higher value creation for the business, particularly in developing countries has gained much advocacy. Thus, the purpose of this study is to examine the relationship between CSR and business value of multinational companies (MNCs) in sub-Saharan Africa. The study adopted quantitative research methodology and using multiple regression analysis, findings show that CSR can positively and significantly predict business values in the multinational subsidiaries. These values include direct (economic value) and indirect (human capital value and reputational business value). This paper therefore contributes to a novel CSR index from the perspective of business value and sustainability of MNCs in the Sub-Saharan Africa (SSA) environment. Thus, the paper recommends MNCs operating in Africa to enhance their social investment through their CSR strategy with the aim that CSR must not be regarded as a cost center, but an investment instrument that can accrue various dividends.

Source: UG
Corporate social responsibility and Canadian mining companies in the developing world: The role of organizational leadership and learning

This paper explores the role of firm-level dynamics in order to explain the extent to which mining companies show a commitment in policy and practice to the principle of corporate social responsibility (CSR). The authors argue that attention must be given to organizational variables, including the role of leadership and learning. As theorizing on CSR in the developing country context remains underdeveloped, this paper tests the applicability of existing organizational behaviour concepts to a case study of a Canadian, mid-tier mining company operating in Ghana by exploring the mechanisms by which mining companies come to recognize and act on their CSR obligations. © Canadian Journal of Development Studies, 2010. All rights reserved.

Source: UG