The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana
This study examined the influence of corporate governance practices on the financial performance of Small and Medium Sized Enterprises (SMEs) in Ghana. The study surveyed 320 owners/managers of SMEs through a stratified random sampling technique. The main instrument for data collection was a questio...
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| Format: | Article |
| Language: | English |
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Ikatan Akuntan Indonesia
2022-05-01
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| Series: | The Indonesian Journal of Accounting Research |
| Subjects: | |
| Online Access: | https://ijar-iaikapd.or.id/index.php/ijar/article/view/607 |
| _version_ | 1811170655511511040 |
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| author | Alhassan Musah Abigail Padi |
| author_facet | Alhassan Musah Abigail Padi |
| author_sort | Alhassan Musah |
| collection | DOAJ |
| description | This study examined the influence of corporate governance practices on the financial performance of Small and Medium Sized Enterprises (SMEs) in Ghana. The study surveyed 320 owners/managers of SMEs through a stratified random sampling technique. The main instrument for data collection was a questionnaire; whiles data were analyzed using statistical tools such as mean and standard deviation and regression techniques to answer the research questions. The results of the study showed that all the four areas of corporate governance practices examined in the study, which include the size of the advisory board, the composition of the board, managerial competence as well as financial disclosure, and transparency, were positively associated with the financial performance of SMEs in Ghana. However, there is poor financial disclosure and transparency among SMEs in Ghana. Weak legal controls, law enforcement, and poor financial disclosure systems affect the corporate governance practice among SMEs. The study concludes that the corporate governance practices of SMEs significantly impact their financial performance. Based on the above findings and conclusion, it was recommended that SMEs' shareholders ensure that their respective enterprises have active and sizeable advisory boards that meet regularly to support the management of the firms. Also, managers of the firms should improve their managerial competence through training and development programs as that affects the performance of SMEs in Ghana |
| first_indexed | 2024-04-10T17:00:18Z |
| format | Article |
| id | doaj.art-0d2d4a20df154b548e751f84d4bf7adf |
| institution | Directory Open Access Journal |
| issn | 2086-6887 2655-1748 |
| language | English |
| last_indexed | 2024-04-10T17:00:18Z |
| publishDate | 2022-05-01 |
| publisher | Ikatan Akuntan Indonesia |
| record_format | Article |
| series | The Indonesian Journal of Accounting Research |
| spelling | doaj.art-0d2d4a20df154b548e751f84d4bf7adf2023-02-06T13:32:17ZengIkatan Akuntan IndonesiaThe Indonesian Journal of Accounting Research2086-68872655-17482022-05-01252259 280 10.33312/ijar.607The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in GhanaAlhassan Musah0Abigail Padi1Takoradi Technical UniversityTakoradi Technical UniversoityThis study examined the influence of corporate governance practices on the financial performance of Small and Medium Sized Enterprises (SMEs) in Ghana. The study surveyed 320 owners/managers of SMEs through a stratified random sampling technique. The main instrument for data collection was a questionnaire; whiles data were analyzed using statistical tools such as mean and standard deviation and regression techniques to answer the research questions. The results of the study showed that all the four areas of corporate governance practices examined in the study, which include the size of the advisory board, the composition of the board, managerial competence as well as financial disclosure, and transparency, were positively associated with the financial performance of SMEs in Ghana. However, there is poor financial disclosure and transparency among SMEs in Ghana. Weak legal controls, law enforcement, and poor financial disclosure systems affect the corporate governance practice among SMEs. The study concludes that the corporate governance practices of SMEs significantly impact their financial performance. Based on the above findings and conclusion, it was recommended that SMEs' shareholders ensure that their respective enterprises have active and sizeable advisory boards that meet regularly to support the management of the firms. Also, managers of the firms should improve their managerial competence through training and development programs as that affects the performance of SMEs in Ghanahttps://ijar-iaikapd.or.id/index.php/ijar/article/view/607dvisory boardcorporate governance practicesfirm performancemanagerial competenciessmall and medium-sized enterprises |
| spellingShingle | Alhassan Musah Abigail Padi The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana The Indonesian Journal of Accounting Research dvisory board corporate governance practices firm performance managerial competencies small and medium-sized enterprises |
| title | The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana |
| title_full | The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana |
| title_fullStr | The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana |
| title_full_unstemmed | The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana |
| title_short | The Influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana |
| title_sort | influence of corporate governance practices on financial performance of small and medium sized enterprises in ghana |
| topic | dvisory board corporate governance practices firm performance managerial competencies small and medium-sized enterprises |
| url | https://ijar-iaikapd.or.id/index.php/ijar/article/view/607 |
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