Corporate governance, ownership structure, cash holdings, and firm value on the Ghana Stock Exchange
Abstract
Purpose
The purpose of this paper is to examine the interaction between corporate governance, ownership structure, cash holdings, and firm value on the Ghana Stock Exchange.
Design/methodology/approach
A multiple regression approach using the seemingly unrelated regression to mitigate the problems of multicollinearity between the cash‐holding variable and other control variables is adopted.
Findings
Board size is found to be positively and statistically significantly related to share price among the corporate governance variables. However, a significant relationship between inside ownership and share price is not found. The results also indicate that additional units of cash holdings do not have a statistically significant influence on share price. Finally, leverage and income volatility are found to be significant determinants of share price.
Originality/value
This is the first of its kind in the country that considers the impact of corporate governance, ownership structure, and firm value on the Ghana Stock Exchange (GSE).
Keywords
Citation
Isshaq, Z., Bokpin, G.A. and Mensah Onumah, J. (2009), "Corporate governance, ownership structure, cash holdings, and firm value on the Ghana Stock Exchange", Journal of Risk Finance, Vol. 10 No. 5, pp. 488-499. https://doi.org/10.1108/15265940911001394
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited