Corporate Governance and Mergers and Acquisitions in Ghana: the Example of Ecobank & the Trust Bank

Abstract

Organisations have generated strong attention in corporate governance codes which may reflect an understanding that equity investors, whether international or local, are considering in addition to factors such as financial performance in the case of investment decisions in anorganisation. The study adopted a survey design where 50 employees of Ecobank Ghana were selected. The study first reveals that Ecobank has a corporate governance code. Majority of the respondents indicated that Ecobank complies with the code. From the responses, most of the respondents indicated that they are very satisfied with the accountability, transparency, responsibility, fairness and equity, clear monitoring structures as well as the issue of managerial and strategic guidance. On a whole Ecobank is performing creditably well based on the four significant factors namelythe structure of the board, shareholder rights, compensation/remuneration and risk &audit oversight. The study again reveals that consolidated business's market share has increased significantly after acquisition though some respondents were indifferent. It is obvious that codes may help to offset shortcomings or flaws within the financial markets or in the law. When the codes are welldrafted, stability and market confidence is created within the market. The codes are meant to ensure checks and balances and also transfer power amongst equity holders and non-executive directors of the company as disclosed by the respondents. It is recommended that disclosure requirements be adhered to limit or avoid the variations with respect to information available to investors. Corporate governance practices in recent times are increasing in terms of the amount of disclosures and there is the need to converge trend regarding the type of information to be disclosed to the public.