IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v9y2022i1p2152159.html
   My bibliography  Save this article

Does corporate governance moderate the relationship between internal control system effectiveness and SMEs financial performance in Ghana?

Author

Listed:
  • Alhassan Musah
  • Abigail Padi
  • Bismark Okyere
  • Deodat E. Adenutsi
  • Charles Ayariga

Abstract

The study examined the effect of the major component of an internal control system according to the COSO framework on the financial performance of SMEs registered with the Association of Ghana Industries (AGI) in Ghana. The study further examined the moderating role of corporate governance practice on the relationship between the components of the internal control system and the financial performance of SMEs registered with AGI. The study surveyed 300 SMEs registered with AGI in Ghana using a questionnaire as the main instrument of data collection. The data were analysed using Pearson correlation analysis and hierarchical regression analysis to achieve the above-stated objectives. The results of the study showed that all the five major components of the internal control system (control environment, control activities, risk assessment, information, and communication and monitoring) have a positive and significant relationship with the financial performance of SMEs registered with AGI. The study further revealed that effective corporate governance practice moderates the relationship between all five components of the internal control system and the financial performance of SMEs registered with AGI in Ghana. The interaction between the independent variables and financial performance is stronger with the introduction of corporate governance practices.

Suggested Citation

  • Alhassan Musah & Abigail Padi & Bismark Okyere & Deodat E. Adenutsi & Charles Ayariga, 2022. "Does corporate governance moderate the relationship between internal control system effectiveness and SMEs financial performance in Ghana?," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2152159-215, December.
    • Handle: RePEc:taf:oabmxx:v:9:y:2022:i:1:p:2152159
    DOI: 10.1080/23311975.2022.2152159
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2022.2152159
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2022.2152159?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Esther Florence Akonor & Peter Agyekum Boateng & Adelaide Gyabea & Sheila Adei & Comfort Agyekum Boateng, 2024. "Board Evaluation and Organizational Performance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 162-174, February.

    More about this item

    Statistics

    Access and download statistics

    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:taf:oabmxx:v:9:y:2022:i:1:p:2152159. 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: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    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.