Exploring the Efficiency of Corporate Governance in State-Owned Agencies and Enterprises: A Comparative Analysis of Nigeria and Ghana

Abstract

In sub-Saharan Africa, state-owned enterprises (SOEs) play a crucial role in delivering public goods and promoting economic growth. However, the disparate performance track records between Nigeria and Ghana are attributed to differences in the quality of governance. This study examines three dimensions of governance—board independence, regulatory autonomy, and transparency—and evaluates their impact on three key performance indicators: revenue per employee, return on assets (ROA), and net profit margin. We draw on hypotheses informed by empirical gaps, agency, resource dependence, and stakeholder theories and use cross-sectional regression logic with interaction variables to show the effect of institutional factors on the effectiveness of governance. These findings demonstrate that transparency is consistently effective in enhancing operations. However, board independence and regulatory autonomy generate significant improvements in performance only when accompanied by the existence of robust institutional frameworks. The consequences of context-specific governance reforms are also discussed.