Corporate Governance and Environmental Performance of Listed Manufacturing Companies in Ghana

Abstract

This study explores how corporate governance affects environmental performance of listed manufacturing companies in Ghana. Ex-post facto research design was utilised. Secondary data were collected from 6 listed industrial companies on Ghana Stock Exchange as at 31^st December 2020. The census sampling technique, descriptive as well as inferential statistics were used for data analysis; while Pooled Ordinary Least Square was utilised to investigate the hypotheses formulated. The outcomes indicate that board size alongside board independence have a negative as well as insignificant influence on environmental performance; whereas managerial ownership, gender diversity, as well as institutional ownership have negative alongside significant effect on environmental performance. It was concluded that corporate governance practices significantly affect the environmental performance of Ghanaian manufacturing enterprises. Overall, the outcomes reflect the economic reality that in developing economies like Ghana, firms often face trade-offs between profitability and environmental responsibility. Limited enforcement of environmental regulations, cost pressures, and weak institutional frameworks may lead corporate boards to deprioritise environmental initiatives despite growing global attention to sustainability. It recommends that, policymakers and regulatory agencies should enforce stronger environmental compliance standards as well as inspire firms to integrate sustainability goals into governance practices; boards should incorporate appreciable proportion of female members with environmental management expertise and align managerial incentives with long-term environmental goals; while institutional investors should be encouraged to adopt environmental criteria in their investment decisions to promote corporate accountability.