Do Audit Committees and Corporate Governance Mechanisms Affect the Bank’s Performance? Empirical Evidence from Panel Data Analysis — Oak Academic Publishing
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Do Audit Committees and Corporate Governance Mechanisms Affect the Bank’s Performance? Empirical Evidence from Panel Data Analysis
Department of Accounting, University of Professional Studies, Accra, Ghana
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Research & Consultancy Centre, University of Professional Studies Accra, Accra, Ghana
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Department of Accounting, University of Professional Studies, Accra, Ghana
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Department of Banking and Finance, University of Professional Studies, Accra, Ghana
1 Department of Accounting, University of Professional Studies, Accra, Ghana
2 Research & Consultancy Centre, University of Professional Studies Accra, Accra, Ghana
3 Department of Accounting, University of Professional Studies, Accra, Ghana
4 Department of Banking and Finance, University of Professional Studies, Accra, Ghana
This paper assessed the effect of audit committee independence and corporate governance mechanism on a bank’s performance. A quantitative research method was adopted to collect secondary data from 20 licensed banks in Ghana from 2013 to 2022, giving a total of 200 observations for this study. Panel data regression analysis revealed that audit committee independence and corporate governance mechanism accounted for 77.83% of the variation of the bank’s performance for the period under study. Furthermore, the study revealed a significant and positive relationship between CEO-non-duality, non-executive director, audit committee independence, and the bank’s performance. The study recommends that the chairman of both the board and audit committee should be independent directors and any offending firm who violated this provision should be fined.
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