Public Financial Resource Management and Governance Mechanisms: Evidence from Local Governments in Northern Ghana

Drawing on Agency, Stewardship, and Institutional theories, this study investigates how governance mechanisms influence financial resource management (FRM) in Ghana’s public sector, focusing on Metropolitan, Municipal, and District Assemblies (MMDAs) in Northern Ghana. It adopts a mixed-methods design, combining survey data from ۱۸۰ principal officers (response rate: ۷۸.۹%; n = ۱۴۲) with qualitative data. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) and thematic analysis. The results indicate that organisational culture and ethical practices (β = ۰.۳۱۸, p < ۰.۰۰۱) and performance management systems (β = ۰.۳۵۲, p < ۰.۰۰۱) have significant positive effects on financial resource management. In contrast, the regulatory and institutional framework shows no significant effect (β = ۰.۰۲۱, p = ۰.۷۸۷). Notably, goal–risk alignment exhibits a significant negative effect (β = −۰.۲۴۱, p < ۰.۰۰۱). Qualitative findings corroborate these results, highlighting weak leadership, political interference, limited enforcement, and underdeveloped risk management systems as key constraints. This study contributes to the public sector governance literature by demonstrating that effective financial resource management depends less on the formal adoption of regulatory and risk frameworks and more on the implementation, internalisation, and interaction of behavioural and performance-based governance mechanisms. The findings support governance reforms that prioritise ethical leadership, performance accountability, and context-sensitive risk management in decentralised public sector institutions.

کلیدواژه ها:

Financial resource management ، Local Government ، Organisational culture and ethics ، Performance Management ، Public sector governance