The study investigated the influence of corporate governance (CG), including board independence, size, and diversity, on market power, with a focus on the mediating role of corporate social responsibility (CSR) within listed firms on the Ghana Stock Exchange (GSE). Utilizing secondary data spanning seven years from 2015 to 2022, gathered from 39 listed firms, the research employed Pooled Ordinary Least Square (OLS) and Panel Linear Model (PLM) techniques, incorporating fixed effect and random effect models. Results indicated that board independence significantly predicted both market power and CSR activities, while board size did not directly influence market power but did affect CSR activities. Additionally, board gender diversity demonstrated a significant impact on market power but not on CSR activities. Moreover, CSR, when considered as an independent variable, significantly influenced market power. Notably, CSR was found to play a mediating role, significantly mediating the relationship between the various dimensions of CG and market power among listed firms in Ghana. This underscores the intricate interplay between CG, CSR, and market power within the context of the Ghanaian stock exchange. The findings provide valuable insights for firms, regulators, and policymakers aiming to enhance corporate governance practices and leverage CSR initiatives to strengthen market power and overall firm performance.
Adams, R. B., & Ferreira, D. (2009). Women in the Boardroom and Their Impact on Governance and Performance. Journal of Financial Economics, 94, 291-309. https://doi.org/10.1016/j.jfineco.2008.10.007
Ahmad, N., Ullah, Z., Ryu, H. B., Ariza-Montes, A., & Han, H. (2023). From Corporate Social Responsibility to Employee Well-Being: Navigating the Pathway to Sustainable Healthcare. Psychology Research and Behavior Management, 16, 1079-1095. https://doi.org/10.2147/prbm.s398586
Al Sakkaf, S. Y., Farouk, S., & Abu Elanain, H. M. (2023). Corporate Social Responsibility Towards Education and Corporation Performance in the UAE: The Mediating Role of Corporation Reputation. Social Responsibility Journal, 19, 305-327. https://doi.org/10.1108/srj-06-2021-0256
Aljifri, K., & Moustafa, M. (2007). The Impact of Corporate Governance Mechanisms on the Performance of UAE Firms: An Empirical Analysis. Journal of Economic and Administrative Sciences, 23, 71-93. https://doi.org/10.1108/10264116200700008
Amponsah-Tawiah, K., & Dartey-Baah, K. (2011). Corporate Social Responsibility in Ghana. International Journal of Business and Social Science, 2, 107-112.
Ararat, M., Claessens, S., & Yurtoglu, B. B. (2021). Corporate Governance in Emerging Markets: A Selective Review and an Agenda for Future Research. Emerging Markets Review, 48, Article 100767. https://doi.org/10.1016/j.ememar.2020.100767
Arthurs, J. D., Hoskisson, R. E., Busenitz, L. W., & Johnson, R. A. (2008). Managerial Agents Watching Other Agents: Multiple Agency Conflicts Regarding Underpricing in IPO Firms. Academy of Management Journal, 51, 277-294. https://doi.org/10.5465/amj.2008.31767256
Bajic, S., & Yurtoglu, B. (2018). Which Aspects of CSR Predict Firm Market Value? Journal of Capital Markets Studies, 2, 50-69. https://doi.org/10.1108/jcms-10-2017-0002
Baltagi, B. H. (2015). The Oxford Handbook of Panel Data. Oxford University Press.
Banks, G., Scheyvens, R., McLennan, S., & Bebbington, A. (2016). Conceptualising Corporate Community Development. Third World Quarterly, 37, 245-263. https://doi.org/10.1080/01436597.2015.1111135
Barnea, A., & Rubin, A. (2010). Corporate Social Responsibility as a Conflict between Shareholders. Journal of Business Ethics, 97, 71-86. https://doi.org/10.1007/s10551-010-0496-z
Bear, S., Rahman, N., & Post, C. (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics, 97, 207-221. https://doi.org/10.1007/s10551-010-0505-2
Ben Fatma, H., & Chouaibi, J. (2023). The Mediating Role of Corporate Social Responsibility in Good Corporate Governance and Firm Value Relationship: Evidence from European Financial Institutions. Meditari Accountancy Research, 32, 1084-1105. https://doi.org/10.1108/medar-08-2022-1762
Bikker, J. A., & Haaf, K. (2002). Competition, Concentration and Their Relationship: An Empirical Analysis of the Banking Industry. Journal of Banking & Finance, 26, 2191-2214. https://doi.org/10.1016/s0378-4266(02)00205-4
Brezina, I., Pekár, J., Čičková, Z., & Reiff, M. (2016). Herfindahl-Hirschman Index Level of Concentration Values Modification and Analysis of Their Change. Central European Journal of Operations Research, 24, 49-72. https://doi.org/10.1007/s10100-014-0350-y
Carroll, A. B. (2016). Carroll’s Pyramid of CSR: Taking Another Look. International Journal of Corporate Social Responsibility, 1, 1-8. https://doi.org/10.1186/s40991-016-0004-6
Chang, C. C., Chen, S. L., Farmania, A., Tsai, F. T., & Wu, P. C. (2018). Corporate Governance and Product Market Power: Evidence from Taiwan Region. The International Journal of Business and Finance Research, 12 , 93-104.
Chang, C., Yang, H., & Hsu, K. (2022). Corporate Social Responsibility and Product Market Power. Economies, 10, Article 151. https://doi.org/10.3390/economies10060151
Chang, Y., Chen, Y., Chou, R. K., & Huang, T. (2015). Corporate Governance, Product Market Competition and Dynamic Capital Structure. International Review of Economics & Finance, 38, 44-55. https://doi.org/10.1016/j.iref.2014.12.013
Cherian, J., Safdar Sial, M., Tran, D. K., Hwang, J., Khanh, T. H. T., & Ahmed, M. (2020). The Strength of Ceos’ Influence on CSR in Chinese Listed Companies. New Insights from an Agency Theory Perspective. Sustainability, 12, Article 2190. https://doi.org/10.3390/su12062190
Chilufya, A., Hughes, E., & Scheyvens, R. (2019). Tourists and Community Development: Corporate Social Responsibility or Tourist Social Responsibility? Journal of Sustainable Tourism, 27, 1513-1529. https://doi.org/10.1080/09669582.2019.1643871
Chou, J., Ng, L., Sibilkov, V., & Wang, Q. (2011). Product Market Competition and Corporate Governance. Review of Development Finance, 1, 114-130. https://doi.org/10.1016/j.rdf.2011.03.005
Demirel, O., & Hatırlı, S. A. (2017). Measuring the Market Power of the Banking Sector in Turkey. Journal of Academic Researches and Studies, 9, 20-34.
Fahad, P., & Rahman, P. M. (2020). Impact of Corporate Governance on CSR Disclosure. International Journal of Disclosure and Governance, 17, 155-167. https://doi.org/10.1057/s41310-020-00082-1
Fahad, P., Nidheesh, K. B., & Rahman, P. M. (2020). Board Gender Diversity and Corporate Social Responsibility: A Bibliometric Analysis. Journal of Cleaner Production, 244, Article 118785.
Fandos-Roig, J. C., Sánchez-García, J., Tena-Monferrer, S., & Callarisa-Fiol, L. J. (2020). Does CSR Help to Retain Customers in a Service Company? Sustainability, 13, Article 300. https://doi.org/10.3390/su13010300
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.
Ghosh, A. (2017). Corporate Governance and Corporate Social Responsibility. In R. Sarkar, & A. Shaw (Eds.), E ssays on Sustainability and Management: Emerging Perspectives (pp. 153-175). Springer. https://doi.org/10.1007/978-981-10-3123-6_8
Giroud, X., & Mueller, H. M. (2011). Corporate Governance, Product Market Competition, and Equity Prices. The Journal of Finance, 66, 563-600. https://doi.org/10.1111/j.1540-6261.2010.01642.x
Glavas, A., & Kelley, K. (2014). The Effects of Perceived Corporate Social Responsibility on Employee Attitudes. Business Ethics Quarterly, 24, 165-202. https://doi.org/10.5840/beq20143206
Halme, M., Rintamäki, J., Knudsen, J. S., Lankoski, L., & Kuisma, M. (2020). When Is There a Sustainability Case for CSR? Pathways to Environmental and Social Performance Improvements. Business & Society, 59, 1181-1227. https://doi.org/10.1177/0007650318755648
Harjoto, M. A., & Jo, H. (2011). Corporate Governance and CSR Nexus. Journal of Business Ethics, 100, 45-67. https://doi.org/10.1007/s10551-011-0772-6
Jain, T., & Jamali, D. (2016). Looking Inside the Black Box: The Effect of Corporate Governance on Corporate Social Responsibility. Corporate Governance: An International Review, 24, 253-273. https://doi.org/10.1111/corg.12154
Javeed, S. A., & Lefen, L. (2019). An Analysis of Corporate Social Responsibility and Firm Performance with Moderating Effects of CEO Power and Ownership Structure: A Case Study of the Manufacturing Sector of Pakistan. Sustainability, 11, Article 248. https://doi.org/10.3390/su11010248
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305-360. https://doi.org/10.1016/0304-405x(76)90026-x
Jo, H., & Harjoto, M. A. (2012). The Causal Effect of Corporate Governance on Corporate Social Responsibility. Journal of Business Ethics, 106, 53-72. https://doi.org/10.1007/s10551-011-1052-1
Kanter, R. M. (1977). Men and Women of the Corporation. Basic Books.
Khaireddine, H., Salhi, B., Aljabr, J., & Jarboui, A. (2020). Impact of Board Characteristics on Governance, Environmental and Ethical Disclosure. Society and Business Review, 15, 273-295. https://doi.org/10.1108/sbr-05-2019-0067
Klein, A. (2002). Audit Committee, Board of Director Characteristics, and Earnings Management. Journal of Accounting and Economics, 33, 375-400. https://doi.org/10.1016/s0165-4101(02)00059-9
Kong, L., Sial, M. S., Ahmad, N., Sehleanu, M., Li, Z., Zia-Ud-Din, M. et al. (2021). CSR as a Potential Motivator to Shape Employees’ View Towards Nature for a Sustainable Workplace Environment. Sustainability, 13, Article 1499. https://doi.org/10.3390/su13031499
Kukah, M. A., Amidu, M., & Abor, J. Y. (2016). Corporate Governance Mechanisms and Accounting Information Quality of Listed Firms in Ghana. African J. of Accountin g, Auditing and Finance, 5, 38-58. https://doi.org/10.1504/ajaaf.2016.077599
Kyere, M., & Ausloos, M. (2021). Corporate Governance and Firms Financial Performance in the United Kingdom. International Journal of Finance & Economics, 26, 1871-1885. https://doi.org/10.1002/ijfe.1883
Li, F., Li, T., & Minor, D. (2016). CEO Power, Corporate Social Responsibility, and Firm Value: A Test of Agency Theory. International Journal of Managerial Finance, 12, 611-628. https://doi.org/10.1108/ijmf-05-2015-0116
Lin, L. S., Huang, I. C., Du, P. L., & Lin, T. F. (2012). Human Capital Disclosure and Organizational Performance. Management Decision, 50, 1790-1799. https://doi.org/10.1108/00251741211279602
Liu, L., Qu, W., & Haman, J. (2018). Product Market Competition, State-Ownership, Corporate Governance and Firm Performance. Asian Review of Accounting, 26, 62-83. https://doi.org/10.1108/ara-05-2017-0080
Michelon, G., Pilonato, S., & Ricceri, F. (2015). CSR Reporting Practices and the Quality of Disclosure: An Empirical Analysis. Critical Perspectives on Accounting, 33, 59-78. https://doi.org/10.1016/j.cpa.2014.10.003
O’Sullivan, G. (2020). The Role of CSR and Corporate Governance in the Sustainable Development of the World. In M. Mulej, G. O’Sullivan, & T. Štrukelj (Eds.), Palgrave Studies in Governance, Leadership and Responsibility (PP. 45-93). Springer International Publishing. https://doi.org/10.1007/978-3-030-44172-2_2
Padachi, K., Ramsurrun, V., & Ramen, M. (2017). Corporate Governance and Firms’ Performance of Mauritian Listed Companies. International Journal of Financial Management and Reporting Analysis, 1, 1-26.
Pande, S., & Ansari, V. A. (2014). A Theoretical Framework for Corporate Governance. Indian Journal of Corporate Governance, 7, 56-72. https://doi.org/10.1177/0974686220140104
Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations: A Resource Dependence Perspective . Harper & Row.
Ramasastry, A. (2015). Corporate Social Responsibility versus Business and Human Rights: Bridging the Gap between Responsibility and Accountability. Journal of Human Rights, 14, 237-259. https://doi.org/10.1080/14754835.2015.1037953
Rodrigo, P., & Arenas, D. (2008). Do Employees Care about CSR Programs? A Typology of Employees According to Their Attitudes. Journal of Business Ethics, 83, 265-283. https://doi.org/10.1007/s10551-007-9618-7
Shahzad, M., Qu, Y., Javed, S. A., Zafar, A. U., & Rehman, S. U. (2020). Relation of Environment Sustainability to CSR and Green Innovation: A Case of Pakistani Manufacturing Industry. Journal of Cleaner Production, 253, Article 119938. https://doi.org/10.1016/j.jclepro.2019.119938
Shukla, U. K., & Thampy, A. (2011). Analysis of Competition and Market Power in the Wholesale Electricity Market in India. Energy Policy, 39, 2699-2710. https://doi.org/10.1016/j.enpol.2011.02.039
Torchia, M., Calabrò, A., & Huse, M. (2011). Women Directors on Corporate Boards: From Tokenism to Critical Mass. Journal of Business Ethics, 102, 299-317. https://doi.org/10.1007/s10551-011-0815-z
Turner, M. R., McIntosh, T., Reid, S. W., & Buckley, M. R. (2019). Corporate Implementation of Socially Controversial CSR Initiatives: Implications for Human Resource Management. Human Resource Management Review, 29, 125-136. https://doi.org/10.1016/j.hrmr.2018.02.001
Uprichard, E. (2013). Sampling: Bridging Probability and Non-Probability Designs. International Journal of Social Research Methodology, 16, 1-11. https://doi.org/10.1080/13645579.2011.633391
Visser, W. (2011). The Ages and Stages of CSR: Towards the Future with CSR 2.0.
Vogel, S. K. (2023). Market Governance as a Balance of Power. Politics & Society, 51, 319-336. https://doi.org/10.1177/00323292231183834
Waddock, S. (2004). Parallel Universes: Companies, Academics, and the Progress of Corporate Citizenship. Business and Society Review, 109, 5-42. https://doi.org/10.1111/j.0045-3609.2004.00002.x
Wang, J., Zhang, Y., & Goh, M. (2018). Moderating the Role of Firm Size in Sustainable Performance Improvement through Sustainable Supply Chain Management. Sustainability, 10, Article 1654. https://doi.org/10.3390/su10051654
Waworuntu, S. R., Wantah, M. D., & Rusmanto, T. (2014). CSR and Financial Performance Analysis: Evidence from Top ASEAN Listed Companies. Procedia - Social and Behavioral Sciences, 164, 493-500. https://doi.org/10.1016/j.sbspro.2014.11.107
Webber, D. A. (2015). Firm Market Power and the Earnings Distribution. Labour Economics, 35, 123-134. https://doi.org/10.1016/j.labeco.2015.05.003
Xiong, X., Chen, M., & Chen, C. (2024). Corporate Governance Matters: How Do Reduced State-Owned Shares Lower Firms’ Market Power in a Developing Country? International Review of Economics & Finance, 93, 211-224. https://doi.org/10.1016/j.iref.2024.03.003
Xu, E. G., Graves, C., Shan, Y. G., & Yang, J. W. (2022). The Mediating Role of Corporate Social Responsibility in Corporate Governance and Firm Performance. Journal of Cleaner Production, 375, Article 134165. https://doi.org/10.1016/j.jclepro.2022.134165
Zaman, R., Jain, T., Samara, G., & Jamali, D. (2022). Corporate Governance Meets Corporate Social Responsibility: Mapping the Interface. Business & Society, 61, 690-752. https://doi.org/10.1177/0007650320973415