Impact of Corporate Governance on Profitability and Sustainability in Rural Community Banks: Evidence from Ghana

https://doi.org/10.37547/irjsrms.2024.113
Section: Articles Published Date: 2025-03-05 Pages: 9-12 Views: 1 Downloads: 1

Authors

  • Abeeku Dadzie Department of Accountancy, School of Business and Management Studies, Sunyani Technical University, Sunyani-Ghana
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Abstract

This study investigates the relationship between corporate governance, profitability, and sustainability in rural community banks in Ghana. Given the crucial role these banks play in local economic development, understanding the impact of governance practices on their financial performance and long-term viability is essential. The research employs a mixed-methods approach, combining quantitative analysis of financial data with qualitative interviews from bank managers and stakeholders. Findings reveal that strong corporate governance practices positively influence profitability and contribute to the sustainability of rural community banks. Effective governance mechanisms, including board oversight and risk management, enhance financial performance and support sustainable development initiatives. The study provides actionable recommendations for improving governance frameworks to bolster the stability and growth of rural community banks in Ghana.

Keywords

Corporate governance, profitability, sustainability, rural community banks, Ghana, financial performance, governance mechanisms