Mediating effect of corporate sustainability on corporate governance and performance of banks in Ghana: a post banking crisis perspective

Sharon Donnir and Kingsley Tornyeva

Cogent Business & Management, 2024, vol. 11, issue 1, 2297480

Abstract: The aim of the study was to investigate the mediating effect of corporate sustainability on corporate governance and performance of banks in Ghana from the post banking crisis perspective. Adopting the purposive sampling technique, 302 key and senior management personnel from all the 23 banks constituted the study sample. The study explored primary data through the use of structured questionnaire to obtain data. In analyzing the data, Partial Least Square Structural Equation Modelling (PLS- SEM) was employed. The study revealed that, corporate governance has insignificant positive effect on bank performance; bank sustainability has significant positive effect on performance and sustainability mediates the corporate governance and bank performance nexus. The study has made significant contributions to both theoretical and empirical literature and has also advanced the on-going discourse on sustainability. Again, it will influence the development of further policies; reemphasizing the sectors’ policies on corporate governance, sustainability performance and disclosures and influence related managerial decisions and strategies. The implication of the study from theoretical dimension, the study has extended literature on agency, stakeholder and signaling theories. For policy development and practice, the study will have significant implications on future policies as well as managerial decisions and strategies on corporate governance and sustainability in the banking sector.Corporate governance is consistently viewed as very crucial in the corporate world especially in the banking industry. Gradually, sustainability has not only emerged as a global concern, but the corporate world has embraced the concept with heighten recognition, advocacy and investment in corporate sustainability. In Ghana, the 2017 – 2018 banking sector crisis attracted several criticisms on the governance structures while stakeholders also raised several concerns on the sustainability of the sector after the crisis. Though, there have been some reforms in the sector to address these issues, it is not certain as to whether the corporate governance in the post crisis era influences performance and whether sustainability plays any significant role. This paper investigates the mediating effect of corporate sustainability on corporate governance and performance of banks in Ghana from the post banking crisis perspective and aims to provide empirical evidence to guide policy directions and operations in the Ghanaian banking sector.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2023.2297480 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:11:y:2024:i:1:p:2297480

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2023.2297480

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().