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Determinants Of Bank Board Structure In Ghana

Author

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  • Michael Adusei

Abstract

The paper investigates the determinants of bank board structure in Ghana and finds that the Scope of Operations Hypothesis could explain the variation in board size but not board independence. On the other hand, the Board Monitoring Hypothesis could only explain the variation in board independence but not board size. The study also finds that cost-income ratio, foreign majority ownership structure and Ghana Stock Exchange listing status are positively and significantly associated with large bank board size. The paper, therefore, argues that as a bank grows in Ghana the size of its board of directors is likely to increase. However, the increase is likely to result in inefficiency of the bank. Furthermore, the study has evidence to conclude that banks with foreign majority ownership structure are not likely to appoint more independent directors.

Suggested Citation

  • Michael Adusei, 2012. "Determinants Of Bank Board Structure In Ghana," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 6(1), pages 15-23.
    • Handle: RePEc:ibf:ijbfre:v:6:y:2012:i:1:p:15-23
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    More about this item

    Keywords

    Board structure; board size; board independence; Scope of Operations Hypothesis; Board Monitoring Hypothesis;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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