| Corporate governance creates structures that evaluate the activities of the organization such that actions or work proceedings can be measured in a more formal and transparent way,so that real situational inference can also be drawn.It also serves as the means of accomplishing those organizational principles and monitoring performance,through efficient board of directors.Quality corporate governance has now become a conventional subject of concern in the world of business.The statement ‘good corporate governance' has been incorporated in the healthcare sector over the last decade,as an element to improve performance.The primary objective of sound corporate governance is to contribute to improved corporate performance,increase the accountability of the institution and to avoid massive disasters before occurring.The research aims to study the impact of corporate governance on organizational performance,using Ghana health industry as a case.The researcher focused on Ghana,because it is the only country in Africa pursuing a universal health coverage policy in a more coherent way,since 2004.Having designed a descriptive plan for the research,the researcher administered a set of designed pre-coded questionnaires to one thousand and five(1005)respondents in hospitals of the country's ten regions(provinces).Financial statements,boardroom documents and other statistical information from the Ministry of health and Ghana Health Service buttressed the primary data used in the study.Both the primary and secondary data were impeccably used to predict the propensity of corporate governance on organizational performance by employing multivariate regression,logistic regression and structural equation modelling approach for analysis.The empirical investigation provided in the study establishes that there is a positive relationship between corporate governance and performance.As corporate governance offers the structure through which the goals and objectives of organizations are recognized,it is important for the institutions to heed to good corporate practices that function effectively for performance accomplishment.Nevertheless,the crucial aspect of governance is the application of an integrated governance system that is reliable and implementable to drive the set goals into achievement.Corporate governance encompasses the management of all resources of the organization which should be treated as finite,while accountability becomes an epitome of governance in the firm.These resources could be financial,human,natural,social or environmental resources,that would make the organization sustainable in the competitive market.Achieving good corporate governance helps a firm to implement sustainability strategies across the business process,manage goal-setting and reporting.Corporate governance processes have a significant impact on an establishment's performance,because these practices dictate how the firm reaches its decisions.This stipulates that corporate governance maintains a culture where good relationships between stakeholders provide optimistic contributions to the goals of the organization.In view of this,the study seeks to measure and evaluate the proposition of corporate governance practices employed by the health facilities.The researcher investigates whether different corporate governance practices across the hospitals explain variations in performance.The findings demonstrate that the presence of board of directors improves firm operations and enhance performance.Corporate governance features such as independent directors,board meeting,CEO duality,CEO compensation,woman directors,board size,audit committee and Organizational Age have an associated impact on performance measures such as Return on Assets,Net Profit Margin and Tobin's Q.Apart from the afore-mentioned financial performance measures,hospitals are also mandated to ensure that the non-financial aspects too are critically assessed and improved.However,reduction of maternal mortality,infant mortality,under five mortality,HIV/AIDS and malaria control had been a national bone of contention.Control practices in health facilities are not exceptionally different from what pertains in other industries.The Healthcare systems require explicitly more effective corporate governance mechanisms to uphold their operations and performances for organizational success and saving of lives.These practices assist healthcare organizations to exhume cynical approaches that generate unproductive results as well as factors militating against the hospital's goals or objectives.This study revealed that practices such as enhanced board diligence,health professionals on board and effective communication have the tendency of reducing mortality(maternal,infant and under five),if well executed.The fight against HIV and Malaria requires crucial strategies to decrease vulnerability.The investigation revealed that corporate governance has a positive effect on hospital performance,regarding the control of the two deadly diseases(HIV and Malaria).The interventions in Ghana health delivery have brought a level of improvement in malaria control,since the disease mortality has significantly declined from 19% in 2010 to 4% in 2016.Through the implementation of systems and policies,the national HIV prevalence has admirably reduced from 2.9% in 2000 to 1.6% in 2017.With regards to this,the board of directors steps up leadership functions through ultimate authority to enforce effective strategic decisions to achieve business objectives.The effectiveness of corporate governance mechanisms is embedded in the role played by a firm's board of directors,because boards have the power to affect changes that can generate a multiplicative effect on performance.It is imperative for boards of hospitals to ensure that good corporate governance practices are adhered to,since their acceptance and implementation produce an encouraging output.Therefore,corporate governance is a key factor in underpinning the integrity and efficiency of an institution.The corporate practices can lead to financial and nonfinancial optimism,which has a repercussion on organizational reputation.The research stipulates that even though good corporate governance mechanisms eventually influence performance positively,it is enhanced if the organization adopts innovation and intellectual capital to improve upon productivity.These seek to augment shareholders' value and protect the interests of other stakeholders by improving accountability and corporate performance. |
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