Unit 1
RESEARCH PROBLEM
Despite the growing nature of the (GSE) Ghana Stock exchange and increasing awareness of
governance issues, No Empirical study exists to determine the linkage between corporate
governance and the financing choices of firms in Ghana.
There seems to be very little enthusiasm on the business scene about impact of corporate
governance in Ghana especially with regard to firms financing options.
Topic: Corporate governance and Financing decisions of Ghana listed firms
(1) Research problem description
(2) Objectives: To examine the relationship between Corporate governance and the capital
structure decision of listed firms in Ghana.
(3) Research Question(s): What are the relationships between corporate government and the
capital structure decisions of the listed firms in Ghana.
(4) Significance of the study
(1) To provide empirical evidence on corporate governance and firms financing
decisions firms developing economy.
(2) It examines how the institution of a good corporate gove5rnance system could
affect the financing decisions of Ghanaian firms.
Unit 2
(1) Identify and explain the major concepts (variables) within the study.
The variables includes:
(2)Corporate governance is concerned with the relationship between the internal governance
mechanism of corporations and society’s conception of the scope of corporate accountability.
(Deakin and Hughes, 1997)
Corporate governance includes the structure, processes, cultures and systems that
engender the successful operation of the organization (keas eg et al. 1997)
The Cadbury committee defines a governance system as the system by which companies
are directed and controlled (Cadbury, 1992)
Pfeiffer and salancick (1978) and lipton and lorsh (1992) there’s a significant relationship
between capital board membership have o\low leverage or debt ratio.
(3) The relationship between the corporate governance characteristics and capital structure.
(4) Refer to
Answer (2)
(5) Refer to answer (2)
(Jenkins on and Mayer, 1992)
The impact of regulations on corporate governance occurs through it’s effect on the way in
which companies are owned - the form in which they are controlled and the process by which
changes in ownership and control take place.
Unit 3
Design used in the study.
The sample unit comprises of all firms that have been listed on the Ghana stock
exchange (GSE) during six (6) year period.
A total of 22 firms qualified to be included in the study sample.
The study employs a panel data methodology panel involve the pooling of observations
on the cross sect rum of the units over several time period’s results that are simple not
detectable in cross sect rum or pure time series.
(2) The unit of the analysis are companies of all firms that have been listed in the (GSE) data on
capital structure, board size board composition (CEO) duality, firm size, profitability, risk and
growth were derived from annual report of the selected firms and the GSE.
(3) The sample was selected from a total of 22 firms qualified to be included on the study
sample
(4) Identify the data collection the techniques or tools used in the study, why and how these
techniques were used.
(5) Were there any limitations?
Unit 4
(1) The type of data used
(2) The data was analyzed using descriptive analysis.
Time series analysis
(3) The major funding’s
The empirical results show statistically significant and positive association between capital
structure and board composition and the CEO duality. The generally indicate that Ghanaians
listed firms pursue higher debt policy with longer board size. The results also show a
negative relationship between the tenure of the CEO and capital structure.
(4) The issue of corporate governance has important implications on the financing decisions of
Ghanaian firms in order to access more debt instrument, firms may have to increase their
board size. A relatively longer board size puts pressure on managers through stringent
monitoring and regulatory mechanism.
(5) Firms with well-established corporate governance structure are able to gain easier access to
debt financing at lower cost since such firms are able to repay their debt on time.