EFFECTS OF COMPLIANCE WITH BOARDS’ RESPONSIBILITIES ON PROFITABILITY OF MEDIUM SCALE ENTERPRISES IN GHANA

This exploratory descriptive research empirically investigated the impact of compliance with board responsibilities on the profitability of MSEs in Ghana. It is anchored on agency and steward theoretical frameworks. 1010 respondents participated in the study and questionnaire was used to collect data. This parametric-quantitative research revealed that: Ghanaian MSEs’ aggregate compliance to board's responsibilities is circa 43%; Compliance to board of directors’ responsibility has circa 31% significant positive association with medium scale enterprises’ profitability at 99% confidence level; and compliance to board of directors’ responsibilities among MSEs in Ghana has 34% statistical significant positive effect on their profitability after controlling for the role of managerial qualifications. The major limitation of this study is that it lacks comparative empirical analysis; as such, the generalization of its findings is very much limited to Ghanaian MSEs only. Therefore, it would not be out of place for a similar study to be carried out in other countries (for example, the English-speaking countries of West Africa). It would also be necessary if profitability figures from audited annual reports of MSEs are incorporated in future study as this research did not incorporate them.