Board composition and value relevance of Ghanaian firms : a seemingly unrelated regression approach

Purpose: The purpose of this study is to examine the connection between board composition and value relevance of financial information in Ghana. Design/methodology/approach: The study uses a panel data of 144 firm-year observations of listed firms in Ghana. Findings: The study finds that a higher fraction of independent directors is associated with lower firm value. The study further finds that board size is positively related to firm value, whereas duality is negatively associated with firm value. Practical implications: The practical implication of this paper is that investors and regulators should be mindful that specifying governance composition should not only be based on “so-called” codes of best practices but also the level of the country's or the sector's development and local institutional structures. Originality/value: This study uses five different measurements of market share and considers the impact of the provision of the Code of Best Practices in Ghana.