THE ROLE OF JUDICIAL EFFICIENCY IN ENHANCING BUSINESS CONFIDENCE AND CAPITAL FORMATION

We examine how corporate governance mechanisms interact with institutional conditions to shape corporate performance in emerging capital markets. We develop and test the Judicial Efficiency Capital Formation model using firm level governance and financial indicators derived from the Global Judicial Efficiency and Business Investment Dataset covering listed companies on the Ghana Stock Exchange during the period 2020 to 2025. The analysis integrates board independence, audit committee effectiveness, and shareholder rights protection as governance mechanisms while regulatory environment operates as a moderating institutional factor. Panel regression evidence shows that stronger board independence, active audit committees, and stronger shareholder protection significantly improve financial performance, investment growth, and market competitiveness. The results also reveal that regulatory quality strengthens the effectiveness of governance mechanisms by reinforcing compliance and transparency incentives. The findings advance governance theory by demonstrating that corporate outcomes emerge from coordinated governance architecture rather than isolated mechanisms. The model provides practical guidance for regulators and corporate leaders seeking to strengthen investor confidence, improve financial accountability, and support sustainable capital formation in emerging financial markets.