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Economic development, corporate governance, and firm performance in Sub-Saharan Africa

Year: 2025

Type: article

Abstract: he study examines the impact of corporate governance on firm performance in five Sub-Saharan African countries, focusing on the role of economic development. The research uses a two-stage least squares (2SLS) regression approach to examine data from 309 publicly traded companies spanning the years 2016–2022. The study found that firms in upper-middle-income (UMI) countries outperform those in lower-middle-income (LMI) countries. Corporate governance positively influences firm performance in LMI countries but negatively affects it in UMI countries. The study further observed that economic development significantly impacts corporate governance-performance relationships in LMI countries compared to UMI countries. Policymakers, especially in UMI countries, are urged to re-assess their current institutional frameworks and consider reforms aimed at alleviating bureaucratic obstacles that impact businesses.

Source: Modern Finance

DOI: 10.61351/mf.v3i1.243

Authors: Isaac Luke Agonbire Atugeba, Emmanuel Acquah-Sam

Institutions: Accra Institute of Technology, Bolgatanga Technical University, Open University Malaysia, Wisconsin International University College

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: diamond

OpenAlex ID: W4408159501

FWCI: 8.153

Cites: 72

Cited by: 3

Related to: 10