PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2020 | 8 | nr 3 | 117--133
Tytuł artykułu

Does the Presence of Governance Structure Affect Small and Medium-sized Enterprise Performance? Evidence from an Emerging Market

Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
Objective: The objective of the article is to determine the effect of governance structure components (audit committee presence, board size adequacy, and board leadership) on SMEs' performance and the moderating effect of chief executive officer (CEO) tenure on the influence of governance structure on SMEs' performance in Ghanaian context.

Research Design & Methods: We sampled 145 respondents from selected SMEs in the Ghanaian manufacturing, telecommunication, and financial sectors for the study. All selected participants completed questionnaires on governance structure and shared their informed perception of the enterprises' performance. The data gathered were analysed using multiple regression analysis and Hayes' process macro.

Findings: The results indicated that board leadership, the presence of an audit committee, and board size adequacy do not significantly influence SMEs' performance. The results further revealed that CEO tenure is a significant negative moderator to the influence of the governance structure on SMEs' performance.

Implications & Recommendations: Future studies must focus on how SMEs in Ghana can put CEOs and board succession plans in place so as to ensure creativity/innovation.

Contribution & Value Added: This study contributes to the body of knowledge relating to the governance structure's influence on various indicators of business performance of SMEs in Ghana. Therefore, this study sought to assess the contribution of corporate governance structures to the performance of SMEs in Ghana. This would help SMEs to know which aspects of their governance structure should be strengthened to effectively contribute to their success. (original abstract)
Rocznik
Tom
8
Numer
Strony
117--133
Opis fizyczny
Twórcy
  • University of Professional Studies Accra, Ghana
  • Tomas Bata University, Zlín
Bibliografia
  • Abor, J., & Biekpe, N. (2007). Corporate governance, ownership structure and performance of SMEs in Ghana: implications for financing opportunities. Corporate Governance, 7(3), 288-300.
  • Abor, J., & Quartey, P. (2010). Issues in SME development in Ghana and South Africa. International Research Journal of Finance and Economics, 39(6), 215-228.
  • Agwu, M.O., & Emeti, C.I. (2014). Issues, challenges, and prospects of small and medium scale enterprises (SMEs) in Port-Harcourt City, Nigeria. European Journal of Sustainable Development, 3(1), 101.
  • Allgood, S., & Farrell, K.A. (2000). The effect of CEO tenure on the relation between enterprise performance and turnover. Journal of Financial Research, 23(3), 373-390.
  • Ansong, A. (2015). Effects of corporate governance on financial performance of small and medium scale enterprises in the Accra metropolis, Ghana (Doctoral dissertation, University of Cape Coast). Retrieved from https://ir.ucc.edu.gh/jspui/bitstream/.../3797/1/ANSONG%2C%202015.pdf on January 10, 2015.
  • Badolato, P.G., Donelson, D.C., & Ege, M. (2014). Audit committee financial expertise and earnings management: The role of status. Journal of Accounting and Economics, 58(2-3), 208-230.
  • Bertrand, M., Black, S.E., Jensen, S., & Lleras-Muney, A. (2019). Breaking the glass ceiling? The effect of board quotas on female labour market outcomes in Norway. The Review of Economic Studies, 86(1), 191-239.
  • Cadbury, A. (1992). The financial aspects of corporate governance (Cadbury report). London, UK: The Committee on the Financial Aspect of Corporate Governance (The Cadbury Committee and Gee and Co, Ltd). Retrieved from https://ecgi.global/sites/default/files/codes/documents/cadbury.pdf on June 7, 2019.
  • Coles, J.L., Daniel, N.D., & Naveen, L. (2008). Boards: Does one size fit all? Journal of Financial Economics, 87(2), 329-356.
  • De Silva Lokuwaduge, C. (2011). Analysis of governance and performance of Australian universities. In Journal of the World Universities Forum, 4(2), 69-84. Chicago, USA: Common Ground Publishing.
  • Dess, G.G., & Robinson, R.B. (1984). Measuring organizational performance in the absence of objective measures: the case of the privately-held enterprise and conglomerate business unit. Strategic Management Journal, 5(3), 265-273.
  • Elsayed, K. (2007). Does CEO duality really affect corporate performance? Corporate Governance: An International Review, 15(6), 1203-1214.
  • Emile, R., Ragab, A., & Kyaw, S. (2014). The Effect of Corporate Governance on Enterprise Performance, Evidence from Egypt. Asian Economic and Financial Review, 4(12), 1865.
  • Freeman, E. (1984). Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.
  • Galoji, S.I., Ahmed, F., & Johari, H. (2013). A moderating effect of leadership tenure on the relationship between leadership self-efficacy and effective leadership behaviour. Jurnal Teknologi, 64(3), 61-67. Retrieved from https://sainshumanika.utm.my/index.php/sainshumanika/article/viewFile/69/69 on June 7, 2019.
  • Gibson, K. (2000). The moral basis of stakeholder theory. Journal of Business Ethics, 26, 245-57.
  • Gill, M., Flynn, R.J., & Reissing, E. (2005). The governance self-assessment checklist: An instrument for assessing board effectiveness. Nonprofit Management and Leadership, 15(3), 271-294.
  • Harjoto, M.A., & Jo, H. (2008). Board leadership and enterprise performance. Journal of International Business and Economics, 8(3), 143-154.
  • Hambrick, D.C., & Fukutomi, G.D. (1991). The seasons of a CEO's tenure. Academy of Management Review, 16(4), 719-742.
  • Hayes, A.F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. New York, USA: Guilford publications. Retrieved from http://afhayes.com/introduction-to-mediation-moderation-and-conditional-process-analysis.html on June 7, 2019.
  • Johannisson, B., & Huse, M. (2000). Recruiting outside board members in the small family business: An ideological challenge. Entrepreneurship and Regional Development, 12, 353-378.
  • Klepczarek, E. (2017). Corporate Governance Theories in the New Institutional Economics Perspec-tive. The Classification of Theoretical Concepts. Studia Prawno-Ekonomiczne, 105, 243-258.
  • Kumar, N., & Singh, J.P. (2013). Effect of board size and promoter ownership on enterprise value: some empirical findings from India. Corporate Governance 13(1), 88-98. https://doi.org/10.1108/14720701311302431
  • Kyereboah-Coleman, A. (2007). The impact of capital structure on the performance of microfinance institutions. The Journal of Risk Finance, 8(1), 56-71.
  • Kyereboah-Coleman, A., & Amidu, M. (2008). The link between small business governance and performance: The case of the Ghanaian SME sector. Journal of African Business, 9(1), 121-143.
  • Kyereboah-Coleman, A., Biekpe, N. (2006). The link between corporate governance and performance of the non-traditional export sector: evidence from Ghana. The International Journal of Business in Society, 6(5), 609-623.
  • Limbach, P., Schmid, M., & Scholz, M. (2015). Do CEOs matter? Corporate performance and the CEO life cycle. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2626340
  • Luo, X., Kanuri, V.K., & Andrews, M. (2014). How does CEO tenure matter? The mediating role of enterprise-employee and enterprise-customer relationships. Strategic Management Journal, 35(4), 492-511.
  • Mayur, M., & Saravanan, P. (2017). Performance implications of board size, composition and activity: empirical evidence from the Indian banking sector. Corporate Governance: The Internation-al Journal of Business in Society, 17(3), 466-489. doi.org/10.1108/CG-03-2016-0058
  • Merika, A., Triantafyllou, A., Kalogeropoulou, S., & Kalokairinos, M. (2016). The causal relationship between CEO tenure and enterprise financial performance in the shipping industry, 17(1), 1-25. Paper presented at European Financial Management Association (EFMA) Conference in Basel, Switzerland. Retrieved from https://www.researchgate.net/publication/313250394_The_Causal_Relationship_Between_CEO_Tenure_and_Firm_Financial_Performance_in_the_Shipping_Industry.
  • Muth, M.M., & Donaldson, L. (1998). Stewardship theory and board structure: a contingency approach. Corporate Governance, 6(1), 5-28.
  • NORDEA (2020). Ghana: Economic and Political Overview. Nordea trade. Retrieved from https://www. nordeatrade.com/en/explore-new-market/ghana/economical-context on May 2, 2020.
  • Nunnally, J.C., & Bernstein, I.H. (1994). The assessment of reliability. Psychometric Theory, 3(1), 248-292.
  • OECD. (2004). OECD Principles of corporate governance. Paris, OECD.
  • Ojeka, S., Iyoha, F.O., & Obigbemi, I.F. (2014). Effectiveness of audit committee and firm financial performance in Nigeria: an empirical analysis. Journal of Accounting and Auditing: Research & Practice, 2014(2014), https://doi.org/10.5171/2014.301176
  • Okofo-Darteh, D., Amartei-Kwei, A., & Boahen, S.O. (2020). Perceived leadership styles and SME performance in Ghana: Organizational culture as a mediator? Journal of Academy of Business and Economics, 20(1), 49-66.
  • Omer, T.C., Shelley, M.K., & Tice, F.M. (2019). Do director networks matter for financial reporting quality? Evidence from audit committee connectedness and restatements. Management Sci-ence, 1-28. https://doi.org/10.1287/mnsc.2019.3331.
  • Pearce, J.A., Robbins, D.K., & Robinson, R.B. (1987). The impact of grand strategy and planning formality on financial performance. Strategic Management Journal, 8(2), 125-134.
  • Pfeffer, J., & Salancik, G.R. (1978). The External Control of Organisations: A Resource-Dependence Perspective. New York, NY: Harper & Row.
  • Pfeffer, J. (1973). Size, composition and function of corporate boards of directors: the organisation-environment linkage. Administrative Science Quarterly, 18, 349-64.
  • Ponnu, C.H. (2008). Corporate governance structures and the performance of Malaysian public listed companies. International Review of Business Research Papers, 4(2), 217-230.
  • Rahman, R.A., & Haniffa, R.M. (2005). The effect of role duality on corporate performance in Malaysia. Corporate Ownership and Control, 2(2), 40-47.
  • Rashid, A. (2009, July). Board composition, board leadership structure and firm performance: Evidence from Bangladesh. In Proceedings of the 2009 AFAANZ Conference. Accounting & Finance Association of Australia and New Zealand.
  • Sanda, A.U., Mukaila, A.S., & Garba, T. (2003). Corporate Governance Mechanisms and Firm Financial Performance in Nigeria. Final Report Presented to the Biannual Research Workshop of the AERC, Nairobi, Kenya, 24-29.
  • Schmid, M.M., & Zimmermann, H. (2005). Should chairman and CEO be separated? Leadership structure and enterprise performance in Switzerland SSRN eLibrary.
  • Sonmez, M., & Yildirim S. (2015). A Theoretical Aspect on Corporate Governance and Its Fundamental Problems: Is It a Cure or Another Problem in the Financial Markets?. Journal of Business Law and Ethics, 20-35.
  • Tabachnick, B.G., Fidell, L.S., & Ullman, J.B. (2007). Using multivariate statistics (5th ed, pp. 481-498). Boston, MA: Pearson.
  • Topak, M.S. (2011). The effect of board size on firm performance: Evidence from Turkey. Middle Eastern Finance and Economics, 14(1), 1450-2889.
  • Tornyeva, K., & Wereko, T. (2012). Corporate governance and enterprise performance: Evidence from the insurance sector of Ghana. European Journal of Business and Management, 4(12), 95-112.
  • V
  • enkatraman, N., & Ramanujam, V. (1987). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11(4), 801-814. Yeh, Y.H., Lee, T.S., & Ko, C.E. (2002). Corporate governance and rating system. Taipei, Taiwan: Sunbright Culture Company.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171602703

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.