The Effect of Leadership Styles on Firm Performance in Ghana

Abstract

This research examines the effect of leadership on financial performance of two Ghanaian banks. The autocratic, democratic and laissez-faire leadership styles theories have been extensively discussed. Correlational research design was employed to determine the predictive relationship between the independent variables (autocratic, democratic and laissez-faire leadership styles) and the dependent variable (financial performance). Multiple Regression test was used to test the hypothesis in the study. The result showed that, none of the leadership styles significantly predicted financial performance of the two banks. However, democratic leadership style was found to account for more variance in financial performance than autocratic and laissez-faire. The implications for practice and theory have been discussed.