Analysis of the Relationship between Share Ownership Structure, Corporate Governance Structure, and Corporate Investment Efficiency, using GSE Market Data (2005-9)

Abstract

Operational efficiency must be at the heart of the activities of the 35 firms listed on the Ghana Stock Exchange (GSE), with regard to share ownership structure, governance structure, and corporate investment efficiency. With randomly selected sample data of seven listed companies from the GSE Fact Book, 2010s, financial performance analysis method was applied to the relevant data. Resulting findings are: that most of the listed companies have high ownership concentration in structure; that corporate governance structure is an important element in the investment strategies of these companies; and that the two findings appear to show some positive relationships with corporate investment efficiency. A major implication is that, GSE should step up their publicity campaign on the importance of effective corporate governance and the benefits of widely-dispersed share ownership structure among potential investors.