Corporate governance, disclosure and foreign share ownership on the Ghana Stock Exchange

Abstract

Purpose – The purpose of this paper is to examine the interaction between corporate disclosure and foreign share ownership on the Ghana Stock Exchange (GSE).Design/methodology/approach – The paper follows the trinary procedure of Aksu and Kosedag and uses the Standard & Poor's transparency and disclosure items in the construction of the disclosure index. Therefore, the paper adopts a panel data analysis covering a period from 2002 to 2007 using the seemingly unrelated regression approach.Findings – The results indicate a statistically significant interaction between corporate disclosures and foreign share ownership among the sample firms. The market value of equity and market‐to‐book value ratio is documented; free cash flow and financial leverage have statistically significant relationships with foreign share ownership.Originality/value – This is the first of its kind in the country that considers the impact of corporate governance and disclosure on foreign share ownership despite the numerous studies ca...