Corporate Governance: The international journal of business in society, 2013
PurposeThe purpose of this paper is to document the effect of ownership structure and corporate g... more PurposeThe purpose of this paper is to document the effect of ownership structure and corporate governance on bank efficiency in the Ghanaian banking industry.Design/methodology/approachThe author applies both accounting data and efficiency measures from the period 1999‐2007 via panel data analysis. Efficiency is measured by computing distances from the stochastic frontiers of estimated translog cost and profit functions. These efficiency measures are regressed on ownership and governance variables with dummy variables for bank types.FindingsThe results show that foreign banks are more cost‐efficient than domestic banks, but not necessarily more profit‐efficient. Nevertheless, foreign banks are more profitable than domestic banks and enjoy better quality loans. Managerial ownership leads to the cost inefficiency of banks. Banks with inside ownership are unprofitable overall but maintain a high loan quality. Governance (a larger board size) strongly improves profit efficiency but sli...
Corporate Governance: The international journal of business in society, 2013
PurposeThe purpose of this paper is to document the effect of ownership structure and corporate g... more PurposeThe purpose of this paper is to document the effect of ownership structure and corporate governance on bank efficiency in the Ghanaian banking industry.Design/methodology/approachThe author applies both accounting data and efficiency measures from the period 1999‐2007 via panel data analysis. Efficiency is measured by computing distances from the stochastic frontiers of estimated translog cost and profit functions. These efficiency measures are regressed on ownership and governance variables with dummy variables for bank types.FindingsThe results show that foreign banks are more cost‐efficient than domestic banks, but not necessarily more profit‐efficient. Nevertheless, foreign banks are more profitable than domestic banks and enjoy better quality loans. Managerial ownership leads to the cost inefficiency of banks. Banks with inside ownership are unprofitable overall but maintain a high loan quality. Governance (a larger board size) strongly improves profit efficiency but sli...
This paper seeks to investigate the relationship between deposit mobilization, credit risk and pr... more This paper seeks to investigate the relationship between deposit mobilization, credit risk and profitability of Ghanaian banks from 2002 to 2011. Secondary data were obtained from financial statements of 17 Ghanaian banks who have operated consistently within the study period. Panel regression analysis is used in the estimation of a function relating to the return on assets (ROA) to measures of credit risk and deposit mobilization as well a few control variables. The results reveal a significantly positive relationship between credit risk, deposit mobilization, growth in interest income, capital adequacy ratio and profitability of Ghanaian banks. However, a significantly negative relationship between year-on-year inflation and ROA was found. With regard to the relationship between bank size and profitability, the results found no significant association between the two. The research suggests that profitable banks in Ghana depend more on bank deposits as one of their main financing o...
Capital structure decisions are the most crucial decisions taken by corporate organizations, as ... more Capital structure decisions are the most crucial decisions taken by corporate organizations, as these decisions have massive impact on the overall cost of capital weighted average and the resultant profitability and market value of shares. Most of the researches conducted on capital structure concluded that there is an optimal capital structure that is affected by a variety of internal and external factors. These factors usually differ from country to country and industry to industry. This paper using a case study methodology, investigated the determinant of capital structure of oil companies in Ghana. The study examined how internal factors such as profitability, asset tangibility, growth, size and riskiness of a firm impacts on the capital structure of the two listed oil marketing companies in Ghana (GOIL and TOTAL) for the period between 2005 and 2014 using ordinary least square regression. The findings indicated that all the factors have significant impact on financia...
This paper seeks to investigate the relationship between deposit mobilization, credit risk and pr... more This paper seeks to investigate the relationship between deposit mobilization, credit risk and profitability of Ghanaian banks from 2002 to 2011. Secondary data were obtained from financial statements of 17 Ghanaian banks who have operated consistently within the study period. Panel regression analysis is used in the estimation of a function relating to the return on assets (ROA) to measures of credit risk and deposit mobilization as well a few control variables. The results reveal a significantly positive relationship between credit risk, deposit mobilization, growth in interest income, capital adequacy ratio and profitability of Ghanaian banks. However, a significantly negative relationship between year-on-year inflation and ROA was found. With regard to the relationship between bank size and profitability, the results found no significant association between the two. The research suggests that profitable banks in Ghana depend more on bank deposits as one of their main financing o...
Capital structure decisions are the most crucial decisions taken by corporate organizations, as ... more Capital structure decisions are the most crucial decisions taken by corporate organizations, as these decisions have massive impact on the overall cost of capital weighted average and the resultant profitability and market value of shares. Most of the researches conducted on capital structure concluded that there is an optimal capital structure that is affected by a variety of internal and external factors. These factors usually differ from country to country and industry to industry. This paper using a case study methodology, investigated the determinant of capital structure of oil companies in Ghana. The study examined how internal factors such as profitability, asset tangibility, growth, size and riskiness of a firm impacts on the capital structure of the two listed oil marketing companies in Ghana (GOIL and TOTAL) for the period between 2005 and 2014 using ordinary least square regression. The findings indicated that all the factors have significant impact on financia...
Journal of Chinese Economic and Foreign Trade Studies
Purpose This study aims to examine the quantitative effect and direction of Chinese Foreign Direc... more Purpose This study aims to examine the quantitative effect and direction of Chinese Foreign Direct Investment (FDI) on economic growth in Africa using a sample of 20 African countries from 2003 to 2012 with data obtained from United Nations Conference on Trade and Development and the World Bank. Design/methodology/approach The study used panel least squares regression, specifically fixed effect model to examine the quantitative effect of Chinese FDI on economic growth in Africa. The study also used Granger causality test to examine whether a causal relationship exists between economic growth and China’s FDI in Africa. Findings The study finds that a 1 per cent increase in China’s FDI stock in Africa significantly increases Africa’s gross domestic product (GDP) growth by 0.607 per cent, all things being equal. Furthermore, the study finds that a causal link exists between GDP growth in Africa and China’s FDI and the nature of causality is unidirectional. Practical implications The st...
Corporate Governance: The international journal of business in society, 2013
PurposeThe purpose of this paper is to document the effect of ownership structure and corporate g... more PurposeThe purpose of this paper is to document the effect of ownership structure and corporate governance on bank efficiency in the Ghanaian banking industry.Design/methodology/approachThe author applies both accounting data and efficiency measures from the period 1999‐2007 via panel data analysis. Efficiency is measured by computing distances from the stochastic frontiers of estimated translog cost and profit functions. These efficiency measures are regressed on ownership and governance variables with dummy variables for bank types.FindingsThe results show that foreign banks are more cost‐efficient than domestic banks, but not necessarily more profit‐efficient. Nevertheless, foreign banks are more profitable than domestic banks and enjoy better quality loans. Managerial ownership leads to the cost inefficiency of banks. Banks with inside ownership are unprofitable overall but maintain a high loan quality. Governance (a larger board size) strongly improves profit efficiency but sli...
Corporate Governance: The international journal of business in society, 2013
PurposeThe purpose of this paper is to document the effect of ownership structure and corporate g... more PurposeThe purpose of this paper is to document the effect of ownership structure and corporate governance on bank efficiency in the Ghanaian banking industry.Design/methodology/approachThe author applies both accounting data and efficiency measures from the period 1999‐2007 via panel data analysis. Efficiency is measured by computing distances from the stochastic frontiers of estimated translog cost and profit functions. These efficiency measures are regressed on ownership and governance variables with dummy variables for bank types.FindingsThe results show that foreign banks are more cost‐efficient than domestic banks, but not necessarily more profit‐efficient. Nevertheless, foreign banks are more profitable than domestic banks and enjoy better quality loans. Managerial ownership leads to the cost inefficiency of banks. Banks with inside ownership are unprofitable overall but maintain a high loan quality. Governance (a larger board size) strongly improves profit efficiency but sli...
This paper seeks to investigate the relationship between deposit mobilization, credit risk and pr... more This paper seeks to investigate the relationship between deposit mobilization, credit risk and profitability of Ghanaian banks from 2002 to 2011. Secondary data were obtained from financial statements of 17 Ghanaian banks who have operated consistently within the study period. Panel regression analysis is used in the estimation of a function relating to the return on assets (ROA) to measures of credit risk and deposit mobilization as well a few control variables. The results reveal a significantly positive relationship between credit risk, deposit mobilization, growth in interest income, capital adequacy ratio and profitability of Ghanaian banks. However, a significantly negative relationship between year-on-year inflation and ROA was found. With regard to the relationship between bank size and profitability, the results found no significant association between the two. The research suggests that profitable banks in Ghana depend more on bank deposits as one of their main financing o...
Capital structure decisions are the most crucial decisions taken by corporate organizations, as ... more Capital structure decisions are the most crucial decisions taken by corporate organizations, as these decisions have massive impact on the overall cost of capital weighted average and the resultant profitability and market value of shares. Most of the researches conducted on capital structure concluded that there is an optimal capital structure that is affected by a variety of internal and external factors. These factors usually differ from country to country and industry to industry. This paper using a case study methodology, investigated the determinant of capital structure of oil companies in Ghana. The study examined how internal factors such as profitability, asset tangibility, growth, size and riskiness of a firm impacts on the capital structure of the two listed oil marketing companies in Ghana (GOIL and TOTAL) for the period between 2005 and 2014 using ordinary least square regression. The findings indicated that all the factors have significant impact on financia...
This paper seeks to investigate the relationship between deposit mobilization, credit risk and pr... more This paper seeks to investigate the relationship between deposit mobilization, credit risk and profitability of Ghanaian banks from 2002 to 2011. Secondary data were obtained from financial statements of 17 Ghanaian banks who have operated consistently within the study period. Panel regression analysis is used in the estimation of a function relating to the return on assets (ROA) to measures of credit risk and deposit mobilization as well a few control variables. The results reveal a significantly positive relationship between credit risk, deposit mobilization, growth in interest income, capital adequacy ratio and profitability of Ghanaian banks. However, a significantly negative relationship between year-on-year inflation and ROA was found. With regard to the relationship between bank size and profitability, the results found no significant association between the two. The research suggests that profitable banks in Ghana depend more on bank deposits as one of their main financing o...
Capital structure decisions are the most crucial decisions taken by corporate organizations, as ... more Capital structure decisions are the most crucial decisions taken by corporate organizations, as these decisions have massive impact on the overall cost of capital weighted average and the resultant profitability and market value of shares. Most of the researches conducted on capital structure concluded that there is an optimal capital structure that is affected by a variety of internal and external factors. These factors usually differ from country to country and industry to industry. This paper using a case study methodology, investigated the determinant of capital structure of oil companies in Ghana. The study examined how internal factors such as profitability, asset tangibility, growth, size and riskiness of a firm impacts on the capital structure of the two listed oil marketing companies in Ghana (GOIL and TOTAL) for the period between 2005 and 2014 using ordinary least square regression. The findings indicated that all the factors have significant impact on financia...
Journal of Chinese Economic and Foreign Trade Studies
Purpose This study aims to examine the quantitative effect and direction of Chinese Foreign Direc... more Purpose This study aims to examine the quantitative effect and direction of Chinese Foreign Direct Investment (FDI) on economic growth in Africa using a sample of 20 African countries from 2003 to 2012 with data obtained from United Nations Conference on Trade and Development and the World Bank. Design/methodology/approach The study used panel least squares regression, specifically fixed effect model to examine the quantitative effect of Chinese FDI on economic growth in Africa. The study also used Granger causality test to examine whether a causal relationship exists between economic growth and China’s FDI in Africa. Findings The study finds that a 1 per cent increase in China’s FDI stock in Africa significantly increases Africa’s gross domestic product (GDP) growth by 0.607 per cent, all things being equal. Furthermore, the study finds that a causal link exists between GDP growth in Africa and China’s FDI and the nature of causality is unidirectional. Practical implications The st...
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