Effect of corporate governance mechanisms on corporate strategy for listed firms in Sub-Saharan Africa (SSA)

Peter Kwarteng (), Kingsley Opoku Appiah, Joseph Akadeagre Agana and Newman Amaning
Additional contact information
Peter Kwarteng: Sunyani Technical University
Kingsley Opoku Appiah: Kwame Nkrumah University of Science and Technology
Joseph Akadeagre Agana: Kwame Nkrumah University of Science and Technology
Newman Amaning: Sunyani Technical University

SN Business & Economics, 2024, vol. 4, issue 6, 1-39

Abstract: Abstract The influence of the board of corporate directors on firms’ strategies has been the subject of debate in the extant literature. Yet, empirical studies have suffered numerous deficiencies: the absence of an all-embracing theoretical outlook and dependence on proxies for the strategy role instead of a direct measure of it. This study empirically examined the influence of corporate governance mechanisms, especially board roles on the extent of corporate strategy, which are categorised into marketing efforts and capital intensity strategies. The applicable data were extracted from the annual reports of 132 non-financial publicly traded companies from Sub-Saharan Africa during 2010–2022. Using the two-step GMM estimation technique, our empirical findings revealed that board size and corporate strategy were positively correlated. Furthermore, board members’ educational background, board tenure and board members’ frequent meetings showed a positive correlation with marketing efforts strategy, whilst board gender heterogeneity recorded a positive association with capital intensity strategy. However, both board independence and the number of board subcommittees revealed a negative relationship with marketing efforts strategy. The results of the research are useful for practitioners and investors to become knowledgeable about those facets of corporate governance that contribute to higher corporate strategy outcomes.

Keywords: Corporate governance mechanisms; Corporate strategy; Board of directors; Marketing efforts strategy; Capital intensity strategy; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s43546-024-00665-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:snbeco:v:4:y:2024:i:6:d:10.1007_s43546-024-00665-y

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-024-00665-y

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().