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Journal cover: Corporate Governance

Corporate Governance

ISSN: 1472-0701

Online from: 2001

Subject Area: Business Ethics and Law

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Corporate governance and the small and medium enterprises sector: theory and implications


Document Information:
Title:Corporate governance and the small and medium enterprises sector: theory and implications
Author(s):Joshua Abor, (Lecturer in the Department of Finance, University of Ghana Business School, Legon, Accra, Ghana.), Charles K.D. Adjasi, (Lecturer in the Department of Finance, University of Ghana Business School, Legon, Accra, Ghana.)
Citation:Joshua Abor, Charles K.D. Adjasi, (2007) "Corporate governance and the small and medium enterprises sector: theory and implications", Corporate Governance, Vol. 7 Iss: 2, pp.111 - 122
Keywords:Corporate governance, Entrepreneurialism, Ghana, Small to medium-sized enterprises
Article type:Conceptual paper
DOI:10.1108/14720700710739769 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

PurposeThe purpose of this paper is to identify the extent to which the corporate governance framework can be applied to small and medium enterprises (SMEs), and discuss these issues further within the Ghanaian context.

Design/methodology/approachAfter considering some of the key issues, the paper shows how relevant these issues are to the SME sector.

FindingsIt is clear that corporate governance brings new strategic outlook through external independent directors and enhances firms' corporate entrepreneurship and competitiveness. Again the problems of credit constraint and managerial incompetence in the Ghanaian SME sector could also be overcome with a good corporate governance structure in place.

Research limitations/implicationsThe discussion mainly focuses on corporate governance within the context of Ghanaian SMEs.

Originality/valueThis paper provides conceptual insights on the application of corporate governance among SMEs.



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