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Corporate Governance and Performance of Pension Funds in Ghana: A Mixed-Method Study

Author

Listed:
  • Isaac Akomea-Frimpong

    (School of Engineering Design and Built Environment, Western Sydney University, Penrith, NSW 2751, Australia)

  • Emmanuel Senior Tenakwah

    (Asia Pacific College of Business and Law, Charles Darwin University, Darwin, NT 0800, Australia)

  • Emmanuel Junior Tenakwah

    (School of Business, Western Sydney University, Parramatta, NSW 2150, Australia)

  • Mary Amponsah

    (Newcastle Business School, The University of Newcastle, Newcastle, NSW 2300, Australia
    The Centre for African Research, Engagement and Partnerships (CARE-P), The University of Newcastle, Newcastle, NSW 2300, Australia)

Abstract

This paper assesses the relationship between corporate governance practices and the performance of pension funds in Ghana, which is an emerging market. Data for this study came from two sources: surveys of pension fund managers and annual financial reports of pension funds. Data analysis techniques include mean score ranking and panel regression. The results showed that corporate governance practices such as upholding the rights of shareholders to know the capital structure of the pension funds, equitable treatment of all shareholders, effective internal controls, and timely supervisory functions of audit committees influence the performance of pensions funds. In addition, ensuring proper board composition, the ethnic and gender diversity of board members affect the success of pension funds in the country. The study indicates that the current challenges facing pension funds in the country include poor investment decisions and market volatilities in the investment market. This study provides insight into the governance practices of pension funds. It is relevant for policies and corporate practices to be strengthened to enhance the performance of the firms.

Suggested Citation

  • Isaac Akomea-Frimpong & Emmanuel Senior Tenakwah & Emmanuel Junior Tenakwah & Mary Amponsah, 2022. "Corporate Governance and Performance of Pension Funds in Ghana: A Mixed-Method Study," IJFS, MDPI, vol. 10(3), pages 1-19, July.
    • Handle: RePEc:gam:jijfss:v:10:y:2022:i:3:p:52-:d:860165
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    References listed on IDEAS

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