The Composition of the Board of Directors and the Company's Performance: Data from Ghana

The focus of this paper is to examine how different board compositions affect company performance. A sample of 24 Ghana Stock Exchange listed companies was examined for the research between 2011 and 2019. The research utilised the panel-corrected standard error (PCSE) regression technique, along with Driscoll-Kraay and robust ordinary least square (OLS) approaches, to guarantee the validity of the conclusions. The study also employs regression analysis and correlation coefficients to evaluate relationships between performance and corporate attributes. The results demonstrate a negative correlation between the size of the board and the business's success, suggesting that more giant boards may result in inefficiencies and harm performance. Conversely, a positive relationship exists between board independence and business performance, indicating that having more independent directors is linked to improved performance. Gender diversity on the board, however, does not have a substantial influence on the success of the company. Although there is a positive link, it is statistically insignificant, implying that the effect of gender diversity on performance is not definitively established. There is a favourable relation between company’s size and its leverage in its performance. It is observed that larger companies often achieve better results, indicating that the benefits of economies of scale and other advantages related to size contribute to enhanced performance. In contrast, more leverage is linked to decreased performance, suggesting that elevated debt levels might heighten the likelihood of default and hurt a company's effectiveness. The investigation also discovers that older firms tend to perform worse, suggesting that they may become less adaptable and less competitive as they age, leading to decreased performance. Overall, the results emphasise the importance of board composition, firm size, and leverage in determining firm performance. Increased representation of autonomous board members, larger firm size, and lower leverage are associated with better performance. These findings provide valuable insights for companies seeking to optimise their board composition and improve overall performance.