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Investigating the Impact of Corporate Governance on Financial Performance of Commercial Banks in Ghana

International Review of Management and Marketing | 2026

Paper Details

Authors: Yeboah M.; Yeboah B.; Djan G.O.; Ali M.M.; Adarkwa O.S.

DOI: 10.32479/irmm.21205

Journal: International Review of Management and Marketing

Year: 2026

Publisher: Econjournals

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

As a popular mechanism, corporate governance is broadly recognized to align individual interests with organizational objectives, thus improving organizational performance. Nevertheless, the specific pathways through which corporate governance influences performance remain underexplored in the context of Ghanaian banks. With the data of seven listed Ghanaian banks over the period 2012-2022, this study examines the effect of corporate governance on bank performance, with bank size and ownership serving as moderating variables. Return on assets (ROA) is employed as a proxy for performance, while board size, board gender diversity, and the proportion of non-executive directors represent corporate governance indicators. Bank growth, interest coverage, asset tangibility, and bank size are included as control variables. Using panel data, the study applies a fixed-effects model to test the hypotheses. The findings reveal that board gender diversity exerts a significant positive effect on ROA, while board size and the proportion of non-executive directors show no significant impact at the 5% level. Moreover, neither bank size nor ownership significantly moderate the relationship between corporate governance variables and bank performance. The study suggests that banks should increase female representation on boards, while regulators such as the Bank of Ghana may place less emphasis on bank size when enforcing corporate governance practices. © 2026 Econjournals. All rights reserved.

Keywords

Bank Ownership; Board Gender Diversity; Corporate Governance; Panel Data Analysis; Return on Assets