Do company directors underestimate the adoption of corporate governance provisions?
Owusu, Andrews; Weir, Charlie
This paper examines whether company directors underestimate the adoption of corporate governance provisions within Ghanaian listed firms. Using a survey approach, the respondents, who were company executives and non-executive directors with knowledge of the Ghanaian Code and its provisions, regard the code as a benchmark for good corporate governance practices within Ghanaian listed firms. They also report some improvement in the standard of corporate governance in their companies since the introduction of the Code. Many of the company directors indicated their preparedness to comply with further corporate governance requirements, such as the adoption of a formal nomination committee something not been currently included in the Ghanaian Code. However, the directors noted that they receive inadequate support from the regulatory and institutional bodies for the implementation of the Ghanaian Code provisions. Many of the directors also supported the review of the Ghanaian Code by an independent committee. With regard to the adoption of the Ghanaian Code and its influence on firm performance, the respondents indicated that the adoption of the specific governance provisions in the area of chief executive officer (CEO)/chairman roles separation, having a balance of executive and non-executive directors on the board, the establishment of audit and remuneration committees, and the full adoption of the Ghanaian Code provisions were all influential in determining firm performance. They, however, did not support the adoption of the board size provision as influential to firm performance. This raises questions about the usefulness of the range of board size as recommended by the Ghanaian Code.
OWUSU, A. and WEIR, C. 2013. Do company directors underestimate the adoption of corporate governance provisions? A survey approach. Journal of modern accounting and auditing [online], 9(11), pages 1526-1534. Available from: https://doi.org/10.17265/1548-6583/2013.11.010
|Journal Article Type||Article|
|Acceptance Date||Nov 30, 2013|
|Online Publication Date||Nov 30, 2013|
|Publication Date||Nov 1, 2013|
|Deposit Date||May 26, 2016|
|Publicly Available Date||May 26, 2016|
|Journal||Journal of modern accounting and auditing|
|Peer Reviewed||Peer Reviewed|
|Keywords||Agency theory; Corporate governance; Firm performance|
OWUSU 2013 Do company directors underestimate
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