This paper investigates the impact of capital structure on the financial performance of commercial banks in Ghana for the period, 2008-2022. The methodology involves a robust analytical framework using econometric models, particularly the... more
This paper investigates the impact of capital structure on the financial performance of commercial banks in Ghana for the period, 2008-2022. The methodology involves a robust analytical framework using econometric models, particularly the Panel Autoregressive Distributed Lag (P-ARDL) regression model enabling a thorough examination of the complex interactions between capital structure and bank performance. Spanning five listed banks over a 15-year period for which consistent data is available, panel-data econometric modelling was used to accommodate individual heterogeneity. The findings reveal a significant long-run positive impact of capital structure on financial performance, suggesting that optimal capital structure can enhance bank performance in the long run. In the short run, capital structure contemporaneously and sluggishly impacts ROA negatively, but with only a weak negative sluggish effect on ROE. The results further highlight the significant long-run detrimental effect of bank size and the robust positive long-run effect of bank growth on the financial performance of banks. The paper recommends a strategic focus on optimising capital structure to enhance the long-run financial performance of Ghanaian commercial banks thereby underscoring the importance of considering internal factors in capital structure decisions. This study contributes to the global discourse on capital structure, offering fresh perspectives from an underdeveloped economic context.
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This paper examines macroeconomic performance and policy environment of post-independent sub-Saharan Africa (SSA) vis-à-vis remittance flows to the sub-region. The paper finds that SSA is the only developing region in the world that still... more
This paper examines macroeconomic performance and policy environment of post-independent sub-Saharan Africa (SSA) vis-à-vis remittance flows to the sub-region. The paper finds that SSA is the only developing region in the world that still depends on foreign aid as its leading external non-debt capital and attracts the least remittances, notwithstanding the positive growth trend since the pursuit of economic policy reforms in the 1980s. In general, low inflation, higher real income growth, domestic savings, investment, exports, financial development, and fiscal policy effectiveness strongly and positively correlate with remittance inflows. This implies remittances are likely to be driven by sound macroeconomic environment in recipient countries. An affirmation of this finding is that, in SSA, (and, indeed, for all developing economies), remittances are pro-cyclical and positively correlate with macroeconomic performance and stability.
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This paper explores the cost-efficiency demand-driven passenger loyalty factors that explain variations in patronage of inter-city public transportation (PT) in Ghana. Given the absence of a significant rail transport system in Ghana,... more
This paper explores the cost-efficiency demand-driven passenger loyalty factors
that explain variations in patronage of inter-city public transportation (PT) in
Ghana. Given the absence of a significant rail transport system in Ghana, PT is
predominantly road-based. The study focuses on inter-city PT because the
industry now faces new challenges in attracting and retaining passengers due to
competition with private hiring vehicles, and other related private transport
service providers in recent years. A sample of 2,431 respondents across the 16
geopolitical regions of Ghana, and based on the Structural Equation Modelling
analytical framework, we test the hypothesis that there is an interaction between
cost-efficiency demand-driven passenger loyalty factors and passenger loyalty in
the PT system of Ghana. Accordingly, the question as to whether and how cost-efficiency demand-driven passenger loyalty factors impact passenger loyalty to
PT in Ghana has been empirically examined. Broadly, the findings reveal that, in Ghana, loyalty rather than
cost-efficiency demand factors impact inter-city public transportation service
delivery. The empirical results show that two-thirds of the total variations in
demand-driven passenger loyalty are accounted for by operation, personnel
service, on-board conditions, the image of public transportation type, service
delivery, cost (service value), switching cost, and cost-efficiency demand factors.
Invariably, overcoming the threats to maximising revenue and sustaining the
efficiency within the Ghanaian inter-city public transportation system is internal and customer satisfaction oriented rather than regulatory environment and other
external factors. Impliedly, demand-driven passenger loyalty deduced from
customer satisfaction is a necessary condition for sustainable revenue
maximisation and operationalisation of PT in Ghana. Based on this result, it is
recommended that the private sector-led public transport operators should
eschew monopolistic tendencies and endeavour to constantly engage
passengers in a bid to meet their expectations and needs that maximise their
satisfaction as clients at all times.
that explain variations in patronage of inter-city public transportation (PT) in
Ghana. Given the absence of a significant rail transport system in Ghana, PT is
predominantly road-based. The study focuses on inter-city PT because the
industry now faces new challenges in attracting and retaining passengers due to
competition with private hiring vehicles, and other related private transport
service providers in recent years. A sample of 2,431 respondents across the 16
geopolitical regions of Ghana, and based on the Structural Equation Modelling
analytical framework, we test the hypothesis that there is an interaction between
cost-efficiency demand-driven passenger loyalty factors and passenger loyalty in
the PT system of Ghana. Accordingly, the question as to whether and how cost-efficiency demand-driven passenger loyalty factors impact passenger loyalty to
PT in Ghana has been empirically examined. Broadly, the findings reveal that, in Ghana, loyalty rather than
cost-efficiency demand factors impact inter-city public transportation service
delivery. The empirical results show that two-thirds of the total variations in
demand-driven passenger loyalty are accounted for by operation, personnel
service, on-board conditions, the image of public transportation type, service
delivery, cost (service value), switching cost, and cost-efficiency demand factors.
Invariably, overcoming the threats to maximising revenue and sustaining the
efficiency within the Ghanaian inter-city public transportation system is internal and customer satisfaction oriented rather than regulatory environment and other
external factors. Impliedly, demand-driven passenger loyalty deduced from
customer satisfaction is a necessary condition for sustainable revenue
maximisation and operationalisation of PT in Ghana. Based on this result, it is
recommended that the private sector-led public transport operators should
eschew monopolistic tendencies and endeavour to constantly engage
passengers in a bid to meet their expectations and needs that maximise their
satisfaction as clients at all times.
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The fundamental objective of this study is to empirically explore the macroeconomic factors that explain variations in migrant remittance inflows to Sub-Saharan Africa (SSA). In doing this, the paper sampled 38 out of 48 SSA countries for... more
The fundamental objective of this study is to empirically explore the macroeconomic factors that explain variations in migrant remittance inflows to Sub-Saharan Africa (SSA). In doing this, the paper sampled 38 out of 48 SSA countries for which consistent balanced panel data can be constructed for the period 2000-2009. The Blundell-Bond system GMM dynamic panel data analytical framework was adopted. The results show that migrant remittances are largely driven by altruism, a signal that the sub-region has not been able to attract more ‘self-interest remittances’, probably due to unattractive investment climate arising out of implementation of unsound macroeconomic policies. The key macroeconomic determinants of remittance flows, measured as a percentage of GDP, are home-country income, host-country income, income differential, inflation, real interest rate differential, real exchange rate depreciation, private sector credit, institutional quality and remittance inflows inertia. While...
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The study examined the effect of audit committee size, audit committee independence and audit quality on bank risk-taking behaviour in Ghana. The study collected data on 18 out of 24 commercial banks in Ghana over a 10-year period. The... more
The study examined the effect of audit committee size, audit committee independence and audit quality on bank risk-taking behaviour in Ghana. The study collected data on 18 out of 24 commercial banks in Ghana over a 10-year period. The study relied on panel-corrected standard errors (PCSE) to establish the relationship between the variables mentioned above. The results of the study showed that audit quality reduces bank risk-taking behaviour in Ghana. The study also found that audit committee independence reduces excessive risk-taking behaviour by banks in Ghana thereby increasing their Z-scores. The study also found that even though there was a positive coefficient between audit committee size and the Z-scores of commercial banks in Ghana, the relationship was statistically insignificant. On the control variables, the study found that bank liquidity reduces risk-taking behaviour whiles non-performing loans increases bank risk-taking behaviour. The implication of the finding is that...
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This paper evaluates the fit-for-purpose of the monetary policy measures implemented by the Bank of Ghana in response to the COVID-19 pandemic. We examine the effectiveness of the BoG’s policy interventions in the context of vector... more
This paper evaluates the fit-for-purpose of the monetary policy measures implemented by the Bank of Ghana in response to the COVID-19 pandemic. We examine the effectiveness of the BoG’s policy interventions in the context of vector autoregressions augmented with macroeconomic and financial indicators. We demonstrate that the BoG’s monetary policy measures have had nominal, real, and financial effects. The monetary interventions have been successful, as evidenced by the gradual reduction in the sovereign spread, improved financial stability, and increased real economic activity. Our findings suggest that balance sheet actions are less effective and should be moderated in the conduct of monetary policy in jurisdictions without zero lower bound constraints. However, the analysis indicates that in times of crisis, central banks should deploy both standard and non-standard tools to stabilize dysfunctional financial markets and avoid a deflationary spiral. The historical and variance deco...
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The macroeconomic implications of trade openness and foreign direct investment (FDI) on industry performance in Ghana have been examined. The main positive determinants of industrial performance are raw materials availability, level of... more
The macroeconomic implications of trade openness and foreign direct investment (FDI) on industry performance in Ghana have been examined. The main positive determinants of industrial performance are raw materials availability, level of economic performance, wages and salaries, and rate of inflation. Industrial performance is affected by trade openness through a number of mechanisms, including monetary policy, fiscal policy, and FDI. The methodological approach adopted for the study was by analyzing a set of macro econometric models using quarterly data for the period 1983-2006 under general-to-specific parsimonious conditions. Unrestricted Co-integrating and Vector Error-Correction Models were estimated to examine the static and dynamic long-run effects, and the short-run dynamics and speed of adjustment to the long-run equilibrium. The findings indicate that industrial performance is largely impeded by trade openness, high lending rate of banks and to a lesser extent corporate tax....
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The fundamental objective of this study is to empirically explore the macroeconomic factors that explain variations in migrant remittance inflows to Sub-Saharan Africa (SSA). In doing this, the paper sampled 38 out of 48 SSA countries for... more
The fundamental objective of this study is to empirically explore the macroeconomic factors that explain variations in migrant remittance inflows to Sub-Saharan Africa (SSA). In doing this, the paper sampled 38 out of 48 SSA countries for which consistent balanced panel data can be constructed for the period 2000-2009. The Blundell-Bond system GMM dynamic panel data analytical framework was adopted. The results show that migrant remittances are largely driven by altruism, a signal that the sub-region has not been able to attract more ‘self-interest remittances’, probably due to unattractive investment climate arising out of implementation of unsound macroeconomic policies. The key macroeconomic determinants of remittance flows, measured as a percentage of GDP, are home-country income, host-country income, income differential, inflation, real interest rate differential, real exchange rate depreciation, private sector credit, institutional quality and remittance inflows inertia. While...
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The central objective of this paper is to explain the concept and relevance of retirement planning within a vibrant Christian organisation such as the Assemblies of God’s Church. In particular, an attempt is made to expose participants to... more
The central objective of this paper is to explain the concept and relevance of retirement planning within a vibrant Christian organisation such as the Assemblies of God’s Church. In particular, an attempt is made to expose participants to the theoretical relevance and application of the benefits of retirement planning to the church as an employer, and the pastors as employees of the church. Accordingly, issues related to the role of the church and beneficiary pastors and other full-time workers such as church administrators are conceptually analysed. The paper recommends that the Assemblies of God’s church should play a pivotal role in establishing and contributing to an attractive pension scheme in the form of an Occupational Pension Plan for its pastors and other full-time employees. This undertaking can only be successful if the church can restructure and streamline some of its activities by formalising and unifying its payment system as well as breaking new grounds, repackaging ...
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In this paper a comprehensive framework for measuring total gross seigniorage as suggested by Neumann was employed to analyze the implications of economic openness and inflation in dollarised developing countries with special reference to... more
In this paper a comprehensive framework for measuring total gross seigniorage as suggested by Neumann was employed to analyze the implications of economic openness and inflation in dollarised developing countries with special reference to Ghana within the context of an extended Cagan model. Using quarterly data, the paper examined the relationship between inflation and seigniorage for the 1996-2005 period and shows how analogous this relationship is to the popular Laffer curve comprising seigniorage generation and inflation rates for Ghana. The main findings of this study are that, in Ghana, economic openness Granger-causes inflation and dollarisation whilst seigniorage-maximizing rate of inflation varies from 102% in the short-run to 74% in the long-run. On the average, foreign currencies constitute more than one-third of the total monetary aggregates in developing countries which is a testimony of high levels of dollarisation making the effectiveness of monetary policies below par...
In this paper we analyzed a dynamic cross-country panel dataset on 31 sampled developing countries involving 16 Latin America and the Caribbean, and 15 Sub-Sahara African countries within the framework of Blundell-Bond Generalized Method... more
In this paper we analyzed a dynamic cross-country panel dataset on 31 sampled developing countries involving 16 Latin America and the Caribbean, and 15 Sub-Sahara African countries within the framework of Blundell-Bond Generalized Method of Moments (GMM). Our results show that generally the impact of remittance inflows on overall development differ across regions. Specifically, the paper reveals that the positive role of international remittances in the development process of underdeveloped economies is more pronounced in Sub-Saharan Africa than in Latin America and the Caribbean sub-region where remittances actually retard socioeconomic development prospects. It would, therefore, be politically imprudent and economically suicidal, to over-depend on international remittances as the panacea for the underdevelopment of Sub-Saharan Africa, Latin America and the Caribbean. The contribution of this paper is unique because it has examined the long-run impact of international remittances o...
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The fundamental objective of this paper is to provide an insight into the role of entrepreneurship in job creation, income generation and empowerment, and poverty reduction in low-income economies. Having provided a conceptual framework... more
The fundamental objective of this paper is to provide an insight into the role of entrepreneurship in job creation, income generation and empowerment, and poverty reduction in low-income economies. Having provided a conceptual framework and the theoretical underpinnings of the linkages of entrepreneurship to job creation, income empowerment and poverty reduction from an economic perspective, the paper develops an entrepreneurial policy-relevant model for breaking the vicious cycle of poverty which has predominantly characterised low-income economies. The paper argues that entrepreneurship is the catalyst for economic growth and development through job creation, income empowerment and poverty reduction in an economy. However, to extend the culture of entrepreneurial thinking and promote entrepreneurship in an economy, it is imperative for governments and other relevant institutions to pursue functional policy goals in this endeavour. Therefore, in order to create high-income generati...
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... methodology. This paper, therefore, aims at ascertaining the empirical case for import-... Bangladesh, India, Pakistan, and Sri Lanka - using cointegration and error-correction models. ... period 1960-1998. The results of this study... more
... methodology. This paper, therefore, aims at ascertaining the empirical case for import-... Bangladesh, India, Pakistan, and Sri Lanka - using cointegration and error-correction models. ... period 1960-1998. The results of this study reveal the presence of threshold beyond which ...
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... Note: ECT stands for error-correction term, B-GSC denotes Breusch-Godfrey Serial Correlation, F-probabilities are presented in [ ], ∆ represents first-differenced notation. ... Gockel, Augustine F., JK Kwakye, and Baffour Osei. .1997.... more
... Note: ECT stands for error-correction term, B-GSC denotes Breusch-Godfrey Serial Correlation, F-probabilities are presented in [ ], ∆ represents first-differenced notation. ... Gockel, Augustine F., JK Kwakye, and Baffour Osei. .1997. ...
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This paper identifies the core macroeconomic factors responsible for explaining the changing levels in international remittances received by SSA countries. A set of annual panel data on 36 SSA countries, covering 1980-2009, was used in a... more
This paper identifies the core macroeconomic factors responsible for explaining the changing levels in international remittances received by SSA countries. A set of annual panel data on 36 SSA countries, covering 1980-2009, was used in a ‘system’ Generalised Method of Moments following Blundell and Bond (1998) dynamic panel-data estimation technique. In order to provide a more detailed insight into the possible dynamics of varying impact of macroeconomic variables that explain remittances received in SSA, decade-based (1980-89, 1990-99, and 2000-09), as well as an overall study period, 1980-2009, estimations were carried out. It was found that both migrant home-country and host-country macroeconomic environment impact on remittance inflows in SSA with a varying impact overtime. In absolute terms, generally, whilst the impact of real exchange rate, migrant income, and institutional quality has been increasing on remittances overtime, the effects of family income and the rate of infla...
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Following the massive economic policy restructuring and reforms since the early 1980s, currency substitution, asset substitution and de facto dollarisation have become common phenomena in nearly all transition and developing economies.... more
Following the massive economic policy restructuring and reforms since the early 1980s, currency substitution, asset substitution and de facto dollarisation have become common phenomena in nearly all transition and developing economies. High and persistent inflation which have been a perennial feature of developing and transition economies is now known to be highly responsible for currency substitution, asset substitution and de facto dollarisation. This paper presents evidence on the macrodynamics of de facto dollarisation, currency substitution and asset substitution during the era of the implementation of the Financial Sector Adjustment Programmes (FINSAPs) in developing and transition economies with special reference to Ghana. The study has found out that de facto dollarisation whether in the form of asset substitution or currency substitution is highly prevalent and poses a serious threat to fiscal and monetary policies effectiveness in developing and transition economies. In Gh...
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... [Downloadable!]; Ahortor, Christian RK & Adenutsi, Deodat E., 2009. "Inflation, capital accumulation and economic growth in import-dependent developing countries," MPRA Paper 29353, University Library of Munich, Germany,... more
... [Downloadable!]; Ahortor, Christian RK & Adenutsi, Deodat E., 2009. "Inflation, capital accumulation and economic growth in import-dependent developing countries," MPRA Paper 29353, University Library of Munich, Germany, revised 2010. ...
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This study analyses the implications of financial liberalisation programme for international remittance inflows with regard to the macroeconomic determinants and also the implications of remittances for economic growth and development in... more
This study analyses the implications of financial liberalisation programme for international remittance inflows with regard to the macroeconomic determinants and also the implications of remittances for economic growth and development in sub-Saharan Africa (SSA) between 1980
and 2009. The methodological approach to the analytical framework of this study is based on the hypothesis that financial liberalisation causes higher inflows of international migrant remittances through official channels to augment the scarce domestic financial resources, and to stimulate economic growth for sustainable development in capital-constrained SSA.
and 2009. The methodological approach to the analytical framework of this study is based on the hypothesis that financial liberalisation causes higher inflows of international migrant remittances through official channels to augment the scarce domestic financial resources, and to stimulate economic growth for sustainable development in capital-constrained SSA.