Sector-Specific Analysis of Corporate Governance in Ghana: Implications of Board Size, and Female Board Chair Leadership for Board Independence and Gender Diversity

Abstract

This study provides a sector-sensitive examination of corporate governance in Ghana, focusing on how board size and female board chair leadership shape board independence and gender diversity among firms listed on the Ghana Stock Exchange. Using a firm-level panel dataset spanning 2011–2022, the analysis employs a Panel Seemingly Unrelated Regression (PSUR) framework to model the interdependent nature of governance outcomes and to isolate structural differences between financial and non-financial institutions. The results reveal that internal board architecture is a decisive determinant of governance quality. Across sectors, larger boards significantly enhance both board independence and gender diversity, reflecting their role in expanding the pool of monitoring and representational expertise. Female board chair leadership emerges as the most influential governance catalyst, strengthening board inclusiveness and autonomy, particularly within non-financial firms where regulatory oversight is less stringent. In contrast, ownership concentration, especially government and foreign ownership, tends to constrain gender diversity while promoting formal board independence, highlighting a persistent governance trade-off between control and inclusion. The study advances governance theory by demonstrating that leadership diversity and board configuration, rather than ownership structure alone, are the primary drivers of inclusive and effective boards in emerging markets. Practically, the findings suggest that firms can strategically strengthen governance by increasing board size and elevating women into board chair roles, while regulators should complement independence mandates with explicit diversity requirements to achieve balanced governance reform. Overall, the paper offers a rigorous and actionable framework for promoting both independent and gender-diverse boards within developing corporate environments.