RURAL AND COMMUNITY BANKS' FINANCIAL PERFORMANCE UNDER THE INFLUENCE OF CORPORATE GOVERNANCE SYSTEM IN THE NORTHERN PART OF GHANA

Abstract: The purpose of the study was to investigate the influence of corporate governance characteristics on the financial performance of Rural and Community Banks in the northern sector of Ghana. The study was quantitative in nature employing the explanatory research design in fulfilling its objectives. Descriptive statistics and panel data regression were applied to data gathered from sixteen rural and community banks over the years ranging from 2007 to 2019. It was found that board composition has a positive but insignificant influence on the return on asset and return on equity of rural and community banks in the northern part of Ghana. Board Committee has a positive and significant influence on the return on asset and return on equity of rural and community banks in the northern part of Ghana. CEO duality negatively and significantly influences ROA and ROE. In connection with the findings, we encourage rural and community banks to constantly evaluate their board composition and committees to determine what to put in place to strengthen them, while putting in place measures to separate CEO and chairmanship positions. The study will enlighten policymakers and management of rural and community banks in the northern sector of Ghana on how effective their board composition, board committee, and CEO duality have been while controlling for bank size and age. Keywords: corporate governance, financial performance, community and rural banks. Title: RURAL AND COMMUNITY BANKS’ FINANCIAL PERFORMANCE UNDER THE INFLUENCE OF CORPORATE GOVERNANCE SYSTEM IN THE NORTHERN PART OF GHANA Author: Eric Nombare, Samuel Aidoo International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 10, Issue 1, January 2023 - March 2023 Page No: 98-115 Paper Publications Website: www.paperpublications.org Published Date: 24-March-2023 DOI: https://doi.org/10.5281/zenodo.7766905 Paper Download Link (Source) https://www.paperpublications.org/upload/book/RURAL%20AND%20COMMUNITY%20BANKS-24032023-4.pdfInternational Journal of Recent Research in Commerce Economics and Management (IJRRCEM), ISSN 2349-7807, Paper Publications, Website: www.paperpublications.or