Ownership Structure and Performance of Listed Banks in Ghana ()
ABSTRACT
The main purpose of this study involves investigating whether or not any empirical
relationship prevails amongst ownership forms and banks’ financial outcomes. Utilizing
archival data from 8 listed banks from 2014 to 2018, this study implemented a panel
regression method of random effect with the aid of Hausman test to facilitate answering the research questions. The study finds that managerial ownership engenders significant parallel associationship with
performance measured with profit before interest and taxation and return on shareholders’
funds. Second, the study learns that banks owned partially by the government and
foreign investors suffer substantially from achieving performance with respect to
profit before interest and taxation, and return on assets. Lastly, the study makes
it known that banks owned by institutions can perform creditably well but the findings
lack strong statistical backing. The study recommends that owners of banking institutions
should practice a managerial system of ownership, linking compensation to performance,
through offering incentive contracts in the form of profit sharing, stock options
and performance bonuses. Banks owned by government, institutions and foreign investors
are advised to strengthen and implement robust auditing and corporate governance
systems so that managerial actions can be supervised and monitored effectively.
Share and Cite:
Amoako-Tuffour, M. , Frempong, A. and Manu, D. (2022) Ownership Structure and Performance of Listed Banks in Ghana.
Open Journal of Business and Management,
10, 882-913. doi:
10.4236/ojbm.2022.102049.
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