The Impact Of Corporate Governance Mechanisms On Firm Performance Of Non-Financial Companies Listed On Ghana Stock Exchange

IDue to the extensive financial crises with its resultant collapse of some world leading businessesand corporations,the concept of corporate governance has received considerable attention in both industrial and academic circles.The role of corporate governance mechanism in the death and survival of corporate entities has become a key component of the corporate governance architecture worldwide.The study examines the impact of corporate governance mechanisms on firm performances in Ghana.Ghana's economy remains underdeveloped and it's in the process of developing however,despite decades of conceptualizing,formulating and implementing various types of economic policies and programs there is little to show for these efforts made in decades.Companies in every economy serves as the engine of growth and development,yet,the non-financial sector in Ghana is burdened with poor performance and is not able to bring about the required economic growth and development needed.The study sought to find out how good corporate governance mechanisms among listed companies in Ghana could address the poor performance of the 28 listed companies to accelerate Ghana's economic growth and development.The study used cross-sectional panel data survey to draw a sample of twenty-eight(28)nonfinancial companies listed on the Ghana Stock Exchange over the financial periods 2007-2017.This period is key because of the recent historic discovery of oil in Ghana and other already existing companies requiring some legal and regulatory changes in the non-financial sector as well as its beginning marking the recent economic down-turn in the world.The study set five specific objectives and the related hypotheses were formulated and examined.Firm performance was measured using Return on Assets(ROA)and Return on Equity(ROE),and Earnings Per Share(EPS).The correlation study research design findings indicate some validity and support for the relevance of corporate governance to firm performance in the Ghanaian non-financial listed companies' industry.Using the coefficient of multiple regression analysis,board size,the presence of independent non-executive directors and CEO tenure were observed to have significant positive effects on firm performance,whilst CEO duality was found to have no significant influence on firm performance.The results further suggest audit committee size has a significant positive effect on performance.The study recommends that governance,board structure,literacy,discipline and social awareness need to be fully strengthened to the desired governance level since Ghanaian non-financial listedcompanies have proven not very committed to all spheres of corporate governance.Boards must maintain strong and independent structures to promote trust and boost investor confidence,local firms are encouraged to learn from the MNCs and provide detailed governance reports in their annual reports.In summary,there is the need to formulate a national corporate governance code that requires not only adopting universal principles but governance adaptations of more suitable and tailored to the specific socioeconomic needs of the Ghanaian economy.