TITLE:
Corporate Governance as a Mediating Channel in the CSR-Market Power Relationship: A PLS-SEM and Random Forest Approach in Ghanaian Industries
AUTHORS:
Timothy A. Ayamga, Albert A. Ashiagbor, Kojo A. Essel Mensah, Paul A. Mudah, Christine Avortri
KEYWORDS:
Corporate Governance, Corporate Social Responsibility, Market Power, Herfindahl-Hirschman Index, Partial Least Squares Structural Equation Modelling, Random Forest Regression, Mediation Analysis, Ghana
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.16 No.9,
September
18,
2026
ABSTRACT: This study examines whether corporate governance mediates the relationship between corporate social responsibility and market power in Ghanaian industries. Using firm-level panel data from 2015 to 2021, the analysis combines partial least squares structural equation modelling with random forest regression to capture both theory-driven mediation pathways and non-linear predictive patterns. The findings show that corporate social responsibility is strongly associated with improved corporate governance quality, reflected in board size, board independence, board gender diversity, and audit committee strength. However, neither corporate governance nor the indirect corporate social responsibility-governance-market power pathway has a statistically meaningful effect on market power. Random forest results confirm that governance and corporate social responsibility variables contribute modestly to predicting market power, with board gender diversity, firm size, and corporate social responsibility intensity emerging as the leading predictors. The evidence suggests that corporate social responsibility in Ghana functions primarily as a mechanism for strengthening internal governance, legitimacy, stakeholder trust, and organisational resilience rather than as a direct source of competitive dominance.