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Corporate governance and company performance across Sub-Saharan African countries

  • Munisi, Gibson
  • Randøy, Trond

This paper examines the extent to which publicly listed companies across Sub-Saharan African countries have adopted “good corporate governance” practices. We investigate the association of these practices with companies’ accounting performance and market valuation. The findings indicate that companies across Sub-Saharan Africa have only partly implemented good corporate governance practices. We find a positive association between our constructed index of good corporate governance practices and accounting performance. However, we find a negative association between the corporate governance index and the market valuation. When the sub-indices are considered, we find that only the board of directors and the audit committee sub-indices are associated positively and significantly with accounting performance. However, we find that only the audit committee sub-index is associated negatively and significantly with market valuation.

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Article provided by Elsevier in its journal Journal of Economics and Business.

Volume (Year): 70 (2013)
Issue (Month): C ()
Pages: 92-110

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Handle: RePEc:eee:jebusi:v:70:y:2013:i:c:p:92-110
Contact details of provider: Web page: http://www.elsevier.com/locate/jeconbus

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