The Effect of Corporate Governance on Strategic Change in Financial Institutions: Evidence from Ghana

The research has investigated the effect of corporate governance on strategic change in rural banks in the Eastern Region of Ghana. It was also examined the importance of governance mechanism and strategic decisions on weaknesses and threats to the banks effective operation. It has examined the understanding of ownership, board, and the top management team in strategic change on banks values. It has also revealed the relationship between strategic/policy changes and the bank performance in the community. A quantitative methodology was used for the study. The main instrument used for data collection was self-developed questionnaire. It was revealed that the importance of governance mechanism and strategic decisions on weaknesses and threats to the effective operation of the banks were 80% very important and 90% important. However, 70% of the management personnel strongly support formal policy development and implementation of the bank. The research concluded that corporate governance has an effect on strategic change on rural banking. It is recommended that strategic changes in rural banks can be implemented if the top management team and Board of Directors agreed and placed high importance on it. A good implementation of strategic change in rural banks will really improve their performance.