Examining the moderating role of ownership structure on corporate governance and bank sustainability: A post banking sector crisis perspective

Abstract

The aim of the study was to examine the corporate governance and corporate sustainability nexus and further examine the moderating role of ownership structure on corporate governance and bank sustainability from the post banking sector crisis perspective. The study sample constituted all the 23 banks licensed by Bank of Ghana to operate in Ghana. Data was obtained through the administration of questionnaires to key personnel of the banks. 276 key management were selected using purposive sampling techniques.  The study adopted Partial Least Square Structural Equation Modelling (PLS - SEM) using SMART-PLS software in analyzing data obtained. The empirical results of the study pointed out that, corporate governance of bank has significant positive effect on bank sustainability. It further revealed that, shares ownership structure does not moderate the relationship between corporate governance and bank sustainability nexus. Implications of the study from the theoretically perspective, is the contribution it makes to literature of the stakeholder and paradox theories. Practically, in devising corporate sustainability strategies, management will use the findings of this study as a guide. The outcome will also guide policy makers in future policies on governance and sustainability especially in an era where sustainability is gaining grounds in the sector amidst the adoption of International financial reporting standards for sustainability which will be effective across all sectors in Ghana including the banking sector soon. The study is limited to the banking sector in Ghana, though sustainability is encouraged in all sectors of the economy and across the globe. It is therefore recommended that, future studies should explore other sectors of the Ghanaian economy and replicate the study in other geographical jurisdictions.

Keywords: Corporate governance, Corporate Sustainability, Ownership Structure, Banks in Ghana, Post banking crisis

DOI: 10.7176/EJBM/16-4-03

Publication date: May 30th 2024