What question did this study set out to answer?

This research aims to explore how board attributes and ownership structures affect shareholders' wealth in Sub-Saharan Africa.

June 14, 2026Open Access

Effect of board-ownership dynamics on shareholders' wealth in Sub-Saharan Africa

Key Points

This research aims to explore how board attributes and ownership structures affect shareholders' wealth in Sub-Saharan Africa.
Utilized a 10-year panel dataset of 1,570 firm-year observations from non-financial listed firms in Sub-Saharan Africa.
Employed the Generalized Method of Moments (GMM) model for data analysis.
Board-ownership dynamics positively influence shareholders' wealth.
Large and gender-diverse boards are associated with increased shareholders' wealth.
CEO duality and excessive managerial and state ownership negatively impact shareholders' wealth.

Abstract

This paper ascertains the effect of board attributes and ownership structure on shareholders' wealth (SW) of listed firms in Sub-Saharan Africa (SSA).We utilised a 10-year panel dataset of 1,570 firm-year from non-financial listed firms in SSA.The GMM model was adopted for data analysis which reveals that, board-ownership dynamics (BODy) has a significant positive influence on SW.Specifically, large and gender diverse boards correlate positively with SW.Conversely, CEO duality, managerial and state ownership have negative effect on SW.Board independence, meeting frequency, and institutional and foreign ownership do not have any significant effects, while firm size has a positive effect on earnings per share but negative on market price per share.These outcomes reduce the inconclusiveness on the subject matter in SSA.Boards need effective monitoring functions in line with the agency theory to strengthen firm value and ensure that BODy operate as a value-creation link.

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