Gender, community affairs and public relations practice in Ghanaian mines: a socio-linguistic study of gender and language nuances

Abstract

The study has examined the differences between executive compensation, firm performance, and shareholder value in line with the prescriptions of the standard agency theory among listed banks in Ghana. Using the data component extracted from the annual reports of four purposively sampled listed banks, the relationship between total operating expenses, directors’ emoluments, net profit, and dividend paid to shareholders were investigated. The pair-wise mean difference test established significant differences between total operating expenses and directors’ emoluments while it recognized insignificant differences between net profit and dividend paid to shareholders. The study found that directors’ emoluments were in conformity with the agency theory’s prescription, but quick to point out that internal control systems of listed banks were weak since there were insignificant differences between net profit and dividend paid, indicating high levels of total operating expenses. The study recommends that directors’ step-up oversight responsibility to reduce operating expenses in order to maximize shareholder value. The research was however limited in scope as far as exploring the relationship between CEO pay and shareholder value is concerned.

Key words: Executive compensation, firm performance, shareholder value