The Effect of Leadership Styles on Sustainable Performance of Listed Banks on the Ghana Stock Exchange: The Mediating Role of Corporate Governance

Abstract

The main purpose of this study is to examine the impact of leadership styles (LS) on corporate governance (CG) and sustainable performance (SP) on listed banks on the Ghana Stock Exchange. The study used a survey research design and focused on nine banks listed on the Ghana Stock Exchange. The sample selection entailed distributing 45 questionnaires to selected respondents within these banks, with each questionnaire representing a distinct respondent in the management hierarchy. Impressively, 360 questionnaires were successfully retrieved, resulting in a response percentage of 88.88%. In addition, the study employed partial least square structural equation modeling (PLS-SEM), explored several hypotheses, and discovered significant connections. The findings suggested that leadership styles had a considerable impact on both corporate governance and the bank's sustainable performance.Furthermore, the result demonstrated a partial mediation impact of corporate governance in the relationship between leadership styles and long-term performance, providing important insights into the complex dynamics of the study context. The study suggests that organizations should pay careful attention to leadership styles and corporate governance, as they play crucial roles in influencing economic, environmental, and social sustainability. Adopting and promoting effective leadership practices and governance structures can lead to positive and sustainable outcomes for organizations.

Keywords: Leadership Style, Corporate Governance, Sustainable Performance, Partial Least Square Structure Equation Modelling.

DOI: 10.7176/EJBM/16-3-16

Publication date: April 30^th 2024