Corporate Governance Compliance and Firm Performance: Evidence from Publicly Listed Firms in Ghana

Abstract

This research aims to investigate the corporate governance compliance practices of the listed firms in the Ghana Stock Exchange (GSE) and assess the levels of compliance on each recommended principle. The study developed a self-construction corporate governance compliance index using the six guidelines of the Ghana Security and Exchange Commission (SEC) six guideline principles on a sample of 33 firms listed on the Ghana Stock Exchange from 2009-2020. A content analysis was employed for the empirical analysis. The study finds that total corporate governance compliance levels increased after the introduction of SEC's best guideline principles over the period under analysis. Also, among the six guideline principles of the SEC (2010), the financial affairs and audits registered the highest compliance level. The study contributes to the existing literature by providing new evidence on compliance practice in the context of Ghanaian listed firms on the GSE, and the effects of individual guidelines principle of corporate governance compliance.