TITLE:
Corporate Governance and Market Power Nexus: The Mediating Role of Corporate Social Responsibility
AUTHORS:
Timothy Azaa Ayamga, Christine Avortri, David Nasere, Sharon Donnir, Kingley Tornyeva
KEYWORDS:
CSR, Corporate Governance, Board Independence, Board Size, Board Diversity, Market Power, Listed Firms, Ghana
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.15 No.8,
August
29,
2025
ABSTRACT: The study investigated the influence of corporate governance (CG), including board independence, size, and diversity, on market power, with a focus on the mediating role of corporate social responsibility (CSR) within listed firms on the Ghana Stock Exchange (GSE). Utilizing secondary data spanning seven years from 2015 to 2022, gathered from 39 listed firms, the research employed Pooled Ordinary Least Square (OLS) and Panel Linear Model (PLM) techniques, incorporating fixed effect and random effect models. Results indicated that board independence significantly predicted both market power and CSR activities, while board size did not directly influence market power but did affect CSR activities. Additionally, board gender diversity demonstrated a significant impact on market power but not on CSR activities. Moreover, CSR, when considered as an independent variable, significantly influenced market power. Notably, CSR was found to play a mediating role, significantly mediating the relationship between the various dimensions of CG and market power among listed firms in Ghana. This underscores the intricate interplay between CG, CSR, and market power within the context of the Ghanaian stock exchange. The findings provide valuable insights for firms, regulators, and policymakers aiming to enhance corporate governance practices and leverage CSR initiatives to strengthen market power and overall firm performance.