Corporate Governance Internal Mechanisms And Corporate Financial Performance,the Mediating Role Of Corporate Governance Disclosure Index;Evidence From Cape Verdean Financial Institutions

The topic of this study is "corporate governance internal mechanisms and corporate financial performance,the mediating role of corporate governance disclosure index;evidence from Cape Verdean financial institutions and the main objective is to investigate,understand,analyze,discuss and provide empirical evidence on the relationship between internal corporate governance mechanisms and financial performance of financial companies in Cape Verde,as well as studying the mediating role of corporate governance disclosure index in the above-mentioned relationship..Cape Verdean financial sector has a sound and healthy banking sector.The banking system which holds more than 80%of the financial system's assets in Cape Verde plays an important role in allocating resources to finance the Cape Verdean economy(BCV 2015),therefore it is important to study the relationship between corporate governance mechanisms and financial performance of financial companies in Cape Verde and investigate the mediating role of corporate governance disclosure index in this relationship.Secondary data was used in establishing the relationship between corporate governance and financial performance of financial companies in Cape Verde and investigate the mediating role of corporate governance disclosure index in this relationship,considered the period of 2006 to 2016.The data were obtained basically from published annual reports of these institutions.Books,articles,journals and other related materials were also used.the central bank of Cape Verde and Cape-Verdean stock exchange annual report were also used.We used data from the Cape Verdean Institute of statistics.Multiple regression analyses and inferential statistics including ANOVA analyses,t-test,f-test as well as the person correlation was used to measure the degree of association between variables under consideration.The proxies used for corporate governance are:board size,board composition,number of board meeting,directors' equity interest holding,board committees.The level of corporate governance disclosure index was used as a mediator.Proxies for the performance of the financial institutions used are return on assets(ROA)and return on equity(ROE).Our findings revealed that the number of board meeting and financial performance were found to be positive and not significantly correlated.Board size had a negative and not significant relationship with performance of financial institutions in Cape Verde.We found no relationship between directors' equity holding and performance of Cape Verdean financial institutions.A positive and significant relationship exist between board composition,board committees and performance of financial institutions in Cape Verde.We found that corporate governance disclosure index poses a mediating role in the relationship between corporate governance internal mechanisms and performance of financial institutions in Cape Verde.