Liquidity risk, Corporate governance and financial performance: a case study of selected banks in Ghana
International Journal of Development Research
Liquidity risk, Corporate governance and financial performance: a case study of selected banks in Ghana
Received 16th December, 2024; Received in revised form 20th December, 2024; Accepted 26th January, 2025; Published online 28th February, 2025
Copyright©2025, Elizabeth Ama Baidoo. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study explores the relationship between liquidity risk, corporate governance, and financial performance in Ghana's banking sector. Using a longitudinal dataset from 2018 to 2022, which includes data from 14 commercial banks, the research investigates the impact of liquidity management practices and governance structures, specifically audit quality and board size on banks' financial performance. The findings indicate that audit fees have a statistically significant negative relationship with return on assets (ROA), while the capital adequacy ratio (CAR) positively correlates with ROA. This study recommends enhancing corporate governance practices to improve financial performance and strengthen the banking sector's stability.
