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Compliance with Shareholders’ Rights and Profitability of Medium Scale Enterprises in Ghana

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  • Simon Peter Tsekpo

    (Kings University College, Accra, Ghana, West Africa)

Abstract

This is an empirical investigation into the impact of compliance with shareholders’ rights on the profitability of medium scale enterprises (MSEs) in Ghana. It is an exploratory research based on descriptive survey design, and political theory of corporate governance. Questionnaire is the major research instrument used; and1010 Respondents participated in the study. It is a pure quantitative research and the data passed basic parametric tests of normality and outlier. The major findings of the research are: MSEs in Ghana largely comply with shareholders’ rights (up to 67% compliance rate is observed in this research); compliance to shareholders’ rights has circa 8% insignificant direct association with the profitability of Ghanaian medium scale enterprises; and compliance with shareholders’ rights has non-significant positive impact on the profitability of MSEs in Ghana after controlling managers’ qualifications. The major limitation of this study is that it lacks comparative empirical analysis; as such, the generalization of its findings is very much limited to Ghanaian MSEs only. Therefore, it would not be out of place for a similar study to be carried out in other countries (for example, the English-speaking countries of West Africa). It would also be necessary if profitability figures from audited annual reports of MSEs are incorporated in future study as this research did not incorporate them.

Suggested Citation

  • Simon Peter Tsekpo, 2020. "Compliance with Shareholders’ Rights and Profitability of Medium Scale Enterprises in Ghana," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(9), pages 394-401, September.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:9:p:394-401
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    References listed on IDEAS

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    1. Paul Gompers & Joy Ishii & Andrew Metrick, 2003. "Corporate Governance and Equity Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 107-156.
    2. Chris Mallin & Andrea Melis, 2012. "Shareholder rights, shareholder voting, and corporate performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(2), pages 171-176, May.
    3. Benjamin Asunka, 2017. "A Case for Regulating Corporate Governance for SMEs in Ghana," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(4), pages 168-168, March.
    4. Ciepley, David, 2013. "Beyond Public and Private: Toward a Political Theory of the Corporation," American Political Science Review, Cambridge University Press, vol. 107(1), pages 139-158, February.
    5. Carl Allwood, 2012. "The distinction between qualitative and quantitative research methods is problematic," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(5), pages 1417-1429, August.
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