SMEs Corporate Governance Mechanisms and Business Performance: Evidence of an Emerging Economy


  • Ronald Essel University of Cape Coast (UCC), College of Distance Education (CoDE), Unit of Business Programmes, Cape Coast, Ghana
  • Emmanuel Addo Plan International, Ghana Office



Corporate governance, Emerging economy, Firm performance, SMEs, Profitability


This paper empirically examines the nexuses between SMEs governance mechanisms [board size (BS), board composition (BC), chief executive officer duality (CEOD), chief executive officer tenure (CEOT), board meetings (BMET), gender diversity (GEND), firm size (SZ) and firm age (AGE)] and business performance (BP) [ROA and Tobin’s Q]. The study deployed panel data multivariate regression via fixed effect for its analysis. By using annual reports of 124 Ghanaian SMEs selected on the basis of data availability, covering 2010-2019, the paper explored SMEs governance-performance-connexion by following the methodologies of researchers/scholars in extant literature. Findings/Results indicates that, there exists positive relationships among CEOT, BMET, SZ and AGE and BP. Nevertheless, BS, BC, CEOD and GEND depicted negative relationships with BP. Findings showed there are mixed results vis-à-vis governance mechanisms and BP. Findings further connote that; Ghanaian SME sector have distinctive attributes and may respond differently to governance mechanisms. Stakeholders will be abreast of the happenings in the Ghanaian SME sector for improved governance mechanisms. This paper contributes to the body of knowledge in extant literature on corporate governance and BP in the SME sector from an emerging economy’s perspective.

Author Biography

Emmanuel Addo, Plan International, Ghana Office

Mr. Emmanuel Adotey Addo holds M. Phil in Development Finance from Ghana Institute of Management and Public Administration (GIMPA) and currently occupy the position of Grant Management Specialist in Plan Internationa [Ghana Office]


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How to Cite

Essel, R., & Addo, E. . (2021). SMEs Corporate Governance Mechanisms and Business Performance: Evidence of an Emerging Economy. Journal of Governance and Integrity, 5(1), 155–169.



JGI Vol. 5 Issue 1, December 2021