Corporate Governance and Company Performance across Sub-Saharan African Countries

Gibson Munisi*, Trond Randøy

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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.

Original languageEnglish
JournalJournal of Economics and Business
Volume70
Pages (from-to)92-110
Number of pages19
ISSN0148-6195
DOIs
Publication statusPublished - Nov 2013
Externally publishedYes

Keywords

  • Corporate government index
  • Company performance
  • Sub-Saharan Africa

Cite this