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

Authors

  • Helena Ahulu University of Professional Studies, Accra
  • John MacCarthy University of Professional Studies

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.

Keywords: Agency theory, Board size, Corporate governance, Duality, Firms

JEL Classifications: G32, G34, O16

DOI: https://doi.org/10.32479/ijefi.8874

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Author Biographies

Helena Ahulu, University of Professional Studies, Accra

Lecturer

John MacCarthy, University of Professional Studies

Lecturer

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Published

2019-12-17

How to Cite

Ahulu, H., & MacCarthy, J. (2019). Does Corporate Governance Structures Predict Firm’s Market Value? Empirical Evidence from Ghana. International Journal of Economics and Financial Issues, 10(1), 52–58. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/8874

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Articles