Title: The risk and returns effects of corporate governance and funding strategy of banks in Ghana

Authors: Felix Gariba; Mohammed Amidu; William Coffie

Addresses: University of Ghana Business School, P.O. Box LG 78, Legon, Accra, Ghana ' University of Ghana Business School, P.O. Box LG 78, Legon, Accra, Ghana ' University of Ghana Business School, P.O. Box LG 78, Legon, Accra, Ghana

Abstract: This paper examines the effects of corporate governance mechanisms and funding strategy on risk and returns of banks in Ghana. We employ a panel dataset of banks from 2000 to 2014, to further shed light on funding modes and performance nexus by analysing the complex interaction between corporate governance, funding strategy, and risk and return. The paper establishes among others, a positive and significant relationship between executive compensation and bank returns implying that appropriate compensation to executive members of banks may improve bank performance and reduce bank risk exposure. The overall implication of this result is that improvements in corporate governance practices ensure more transparent method in determining board structure as well as in setting executive compensation for increased bank returns.

Keywords: corporate governance; funding strategy; risk; return and developing countries.

DOI: 10.1504/AJAAF.2018.092378

African Journal of Accounting, Auditing and Finance, 2018 Vol.6 No.2, pp.154 - 175

Received: 03 Nov 2017
Accepted: 22 Mar 2018
Published online: 16 Jun 2018 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article