Abstract:
There have been several studies that have explored the linkage between corporate
governance practices and stock market performance, most of which have reported
inconclusive and conflicting result. This could be attributable to the fact that, the
mediating role of certain variables that plays significant role in such relationship are
usually ignored. On this basis, the current study examines the mediums through which
corporate governance compliance translate into stock market performance. In this
direction, the current study aimed at examining the linkage between corporate
governance compliance and stock market performance through a sustainability
reporting. A sample of 14 listed firm were selected and data on study variables were
collected from annual reports and stand-alone sustainability reports over a six-year
period from 2017 to 2022. The data was analysed using structural equation modelling.
It was observed that, firms in the extractive industry maintained high level of
Sustainability disclosure as compare to those manufacturing firms. Also, increase
corporate governance compliance directly influence their stock market performance
which is a confirmation of signalling theory. Again, sustainability disclosure was found
to partially mediate the relationship between corporate governance compliance and
stock market performance. The study therefore recommends that the activities on
sustainability should be clearly integrated as part of the firm’s corporate and business
level strategies. The study again recommends that, firms should consciously adopt a
proper strategy to comply with corporate governance rules as this have direct influence
on stock market performance.
Description:
A Thesis in the Department of Accounting, School of Business,
submitted to the School of
Graduate Studies, in partial fulfilment
of the requirements for the award of degree
Master of Philosophy
(Accounting)
In the University of Education, Winneba