Examine the short run effect of corporate governance on Ghana SIC’s financial performance

Corporate governance plays a vital role in creating a corporate culture of consciousness, transparency, and openness. This study examine the short run effect of corporate governance on Ghana SIC’s financial performance. The study employs the Autoregressive Distributed Lag (ARDL) technique to investigate the multifaceted relationship between corporate governance and the financial performance of SIC (Sampled Industrial Company). Using time-series data spanning from 2017 to 2021, the study examines the short-term impacts of corporate governance on SIC's financial performance while considering the influence of a control variable, firm size. The dependent variables in this analysis were return on assets, while the independent variables encompass board size, board composition, and CEO tenure at SIC. The control variable utilized was firm size. To assess the hypotheses, regression analysis was conducted, resulting in the identification of short-run equilibrium relationships among the variables. The study found board size and board composition insignificant influence on SIC's financial performance. However, CEO tenure at SIC was statistically significant negative effect on financial performance of SIC insurance companies in Ghana. Moreover, when considering the control variable, firm size demonstrates a highly significant negative impact on return on assets at SIC in the long run. The findings of this study provide valuable insights into the complex interplay between corporate governance and financial performance, shedding light on the nuanced effects of board size, board composition, CEO tenure, and firm size on SIC's financial outcomes. The current study is considered as a battery for further research and studies in the context of corporate governance and financial performance