Corporate governance and company performance across Sub-Saharan African countries

Gibson Munisi and Trond Randøy

Journal of Economics and Business, 2013, vol. 70, issue C, 92-110

Abstract: This paper examines the extent to which publicly listed companies across Sub-Saharan African countries have adopted “good corporate governance” practices. We investigate the association of these practices with companies’ accounting performance and market valuation. The findings indicate that companies across Sub-Saharan Africa have only partly implemented good corporate governance practices. We find a positive association between our constructed index of good corporate governance practices and accounting performance. However, we find a negative association between the corporate governance index and the market valuation. When the sub-indices are considered, we find that only the board of directors and the audit committee sub-indices are associated positively and significantly with accounting performance. However, we find that only the audit committee sub-index is associated negatively and significantly with market valuation.

Keywords: Corporate governance index; Company performance; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: G32 G34 L22 L25 P21 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:70:y:2013:i:c:p:92-110

DOI: 10.1016/j.jeconbus.2013.08.003

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