IDEAS home Printed from https://ideas.repec.org/a/pdc/jrpieb/v15y2015i1p1-30.html
   My bibliography  Save this article

Corporate governance structure and shareholder wealth maximization

Author

Listed:
  • Kwadwo Boateng Prempeh
  • Eugene Odartei-Mills

Abstract

Over the past two decades the ideology of shareholder value has become entrenched as a principle of corporate governance among companies. A well-established corporate governance system suggests effective control and accounting systems, stringent monitoring, effective regulatory mechanism and efficient utilisation of firms’ resources resulting in improved performance. The object of the research presented in this paper is to provide empirical evidence on the effects of corporate governance on shareholder value maximization of the listed companies in Ghana. Data from ten companies listed on Ghana Stock Exchange covering the period 2003 –2007 were used and analysis done within the panel data framework. The dependent variables, dividend per share and dividend yield are used as a measure of shareholder wealth maximization and the relation between corporate governance and shareholder wealth maximization is investigated. The regression results show that both the board size and the independence have statistically significant relationship with shareholder wealth maximization.

Suggested Citation

  • Kwadwo Boateng Prempeh & Eugene Odartei-Mills, 2015. "Corporate governance structure and shareholder wealth maximization," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 15(1), pages 1-30, April.
    • Handle: RePEc:pdc:jrpieb:v:15:y:2015:i:1:p:1-30
    as

    Download full text from publisher

    File URL: https://academicpublishingplatforms.com/downloads/pdfs/pieb/volume21/201607130011_01_PIEB_Vol15_Issue1_2015_Prempeh_and_Odartei-Mills_Corporate_governance_structure_shareholder_wealth_maximization_pp.1-30.pdf
    Download Restriction: no
    File URL: https://academicpublishingplatforms.com/article.php?journal=PIEB&number=21&article=2214
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pdc:jrpieb:v:15:y:2015:i:1:p:1-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jaroslav Holecek (email available below). General contact details of provider: https://edirc.repec.org/data/pradecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.