Corporate Governance Reimagined: Integrating Diversity, Accountability and Stakeholder Inclusivity in Ghanaian Boardrooms

Abstract

This study embarks on a comprehensive exploration of the evolving landscape of corporate governance in Ghana, focusing on the integration of diversity, accountability, and stakeholder inclusivity in boardrooms. The research is grounded in a multifaceted theoretical framework, drawing from Agency, Resource Dependence, and Signaling Theory to dissect the complex dynamics between board composition and firm performance. The study critically examines the impact of board composition, including the balance of inside versus outside directors, board size, role duality, and diversity, on the performance of Ghanaian firms. It highlights the shift from a traditional shareholder-centric model to a more inclusive approach, emphasizing ethical practices and stakeholder engagement. The research identifies unique challenges in the Ghanaian context, such as concentrated ownership patterns, weak legal frameworks, and cultural influences on corporate governance. The findings suggest that a balanced board composition, characterized by independence, expertise, and diversity, significantly enhances both financial and non-financial performance, particularly in SMEs. The study concludes with strategic recommendations for policymakers and firms in Ghana, advocating for robust governance structures that align with global standards while considering local nuances. This research contributes to the discourse on corporate governance in developing economies, offering insights for theoretical advancement and practical implementation.