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Does Corporate Governance Structures Predict Firm's Market Value? Empirical Evidence from Ghana

Author

Listed:
  • Helena Ahulu

    (University of Professional Studies, Accra, Ghana)

  • John MacCarthy

    (University of Professional Studies, Accra, Ghana)

Abstract

This paper examined the effect of corporate governance structures on the market value of firms in Ghana. Quantitative data was collected on thirty-one firms listed on the Ghana Stock Exchange from 2009 to 2018 to predict the effect of corporate governance structures on the firm's market value. Panel data regression analysis revealed that corporate governance structures accounted for 84.9% of the variation of a firm's market value for the period. Furthermore, the study revealed a significant relationship between CEO duality, Non-executive director, board size and firm's profitability and value. The study concludes that firms should separate CEO position from board chairman position to enhance a firm's profitability and value.

Suggested Citation

  • Helena Ahulu & John MacCarthy, 2020. "Does Corporate Governance Structures Predict Firm's Market Value? Empirical Evidence from Ghana," International Journal of Economics and Financial Issues, Econjournals, vol. 10(1), pages 52-58.
    • Handle: RePEc:eco:journ1:2020-01-7
    as

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    References listed on IDEAS

    as
    1. Chiraz Ben Ali, 2014. "Corporate Governance, Principal-Principal Agency Conflicts, and Disclosure," Working Papers 2014-125, Department of Research, Ipag Business School.
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    More about this item

    Keywords

    Agency theory; Board size; Corporate governance; Duality; Firms;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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