- P.o. box AO 534
- +233549200664
- Am an aspiring academic with interest in finance, accounting and banking.edit
Motivated by the agency theory and the need to examine the effect of separation of ownership and management, this study examines the determinants of profitability in different firm ownership structures and how different ownership... more
Motivated by the agency theory and the need to examine the effect of separation of ownership
and management, this study examines the determinants of profitability in different firm
ownership structures and how different ownership structures impact the profitability of listed
firms between 2003 and 2013, using pooled annual data of 23 Ghanaian listed firms. Employing
a number of static models (OLS, Random Effects and 3 Stage Least Squares), we find evidence
that while profit determinants vary for listed firms given their ownership structures, ownership
structures also affected profitability differently. Specifically, for listed firms, profitability was
determined by capital intensity, liquidity, financial risk, age and GDP; for non-family owned
listed firms, profitability was determined by capital intensity, liquidity, market share and age; for
foreign-owned firms, profitability was determined by capital intensity, liquidity, age and GDP;
and for non-foreign ownership, profitability was determined by capital intensity, liquidity,
financial risk, growth, age and GDP. When we examine the impact of ownership structure on
profitability and find that family-owned listed firms make 30% less profits compared to nonfamily owned ones, whilst foreign-owned firms make 13% more profits than non-foreign owned
ones. These findings confirm the agency theory which posits that separation of ownership and
management, though may lead to agency problems, can positively affect profits. The study
recommends that family-owned listed firms should consider diluting ownership in order to grow
more profits.
and management, this study examines the determinants of profitability in different firm
ownership structures and how different ownership structures impact the profitability of listed
firms between 2003 and 2013, using pooled annual data of 23 Ghanaian listed firms. Employing
a number of static models (OLS, Random Effects and 3 Stage Least Squares), we find evidence
that while profit determinants vary for listed firms given their ownership structures, ownership
structures also affected profitability differently. Specifically, for listed firms, profitability was
determined by capital intensity, liquidity, financial risk, age and GDP; for non-family owned
listed firms, profitability was determined by capital intensity, liquidity, market share and age; for
foreign-owned firms, profitability was determined by capital intensity, liquidity, age and GDP;
and for non-foreign ownership, profitability was determined by capital intensity, liquidity,
financial risk, growth, age and GDP. When we examine the impact of ownership structure on
profitability and find that family-owned listed firms make 30% less profits compared to nonfamily owned ones, whilst foreign-owned firms make 13% more profits than non-foreign owned
ones. These findings confirm the agency theory which posits that separation of ownership and
management, though may lead to agency problems, can positively affect profits. The study
recommends that family-owned listed firms should consider diluting ownership in order to grow
more profits.
Research Interests:
The financial industry is growing up rapidly, enabling large volumes of transactions to be carried out. This growth has significantly increased the demand for insurance and insurance products. Though prior studies have examined the... more
The financial industry is growing up rapidly, enabling large volumes of transactions to be carried out. This growth has significantly increased the demand for insurance and insurance products. Though prior studies have examined the factors that drive the performance of the insurance industry from life and non-life perspective, not much attention had been given to the contribution of insurance brokers who perform key roles in the insurance sector. This study examined the factors that determine the profitability of insurance brokers in a developing economy, Ghana. Panel data from 64 insurance brokerage firms were sampled over a period of 5 years (2011 to 2015). The study adopted a fixed effects and random effects estimation model using robust standard errors to check for biases. We found that monetary assets and firm size positively affects returns (ROA and ROE) whilst debt and fixed assets had a negative effect on returns. Comparing monetary assets and size, size contributed more to profitability. The study recommends that government, policymakers, and other stakeholders adopt competent growth and development strategies to ensure the sector is more resourced.
Research Interests:
The study sought to assess the impact of sports betting on the investment behaviour of Ghanaians, focusing on sports betting centers within the Accra Metropolis, Ghana. The objectives of this observational study were to determine how... more
The study sought to assess the impact of sports betting on the investment behaviour of Ghanaians, focusing on sports betting centers within the Accra Metropolis, Ghana. The objectives of this observational study were to determine how individuals perceive the risk of sports lotteries as opposed to investment, to determine if sports lottery was viewed as an alternative to investments and savings, and to understand how participation in sports lotteries affects individuals' ability to save and invest. In adopting a survey approach, 99 sports betting participants across selected betting centers were examined using questionnaires and the data subsequently analyzed through cross-tabulations. The study found that sports betting behaviour had a complementary rather than a substitutionary effect on investment behaviour. The participants were both risk-aware and risk-averse, but engaged nevertheless in betting for a chance of winning a high payoff. Thus, the findings demonstrated that sports betting participants viewed betting as a means to an end, a chance to improve their financial circumstances, rather than as a substitute for investing, and exhibited understanding of a clear distinction, with regards to behaviour, towards investing and sports betting. In return for a substantive payoff, the respondents were willing to stop sports betting, thereby indicating that the financial payoffs were the main motivation for sports betting. The findings also provided evidence that individual sports betting behaviour can be moderated by influencing one's financial circumstances.
Research Interests:
The purpose of this paper is to holistically present relevant empirical findings on FDI, economic growth and spillover effects in the African continent, focusing primarily on technology transfer. This review shows evidence to suggest the... more
The purpose of this paper is to holistically present relevant empirical findings on FDI, economic growth and spillover effects in the African continent, focusing primarily on technology transfer. This review shows evidence to suggest the FDI coming into Africa is low compared to other continents, even though foreign investments have consistently yielded higher returns. The paper also presents stylized facts of FDI inflows and examines the strands in literature. Aunique graphical framework showing technology transfer channels is well elaborated. The study provides a sufficient empirical view of FDI and technology transfer in the African contextand suggests this transfer of technology could be the means of bridging the technology gap between developed and developing economies.
Research Interests:
The objective of the study was to examine the determinants of Foreign Direct Investment (FDI) from 1985 to 2015 in an emerging economy, Ghana. The study used a robust OLS regression and a Granger Causality Test to test for causal effects... more
The objective of the study was to examine the determinants of Foreign Direct Investment (FDI) from 1985 to 2015 in an emerging economy, Ghana. The study used a robust OLS regression and a Granger Causality Test to test for causal effects on a longitudinal data of thirty years. The study found, using a robust OLS regression model that, natural resource endowment, government expenditure, external debt and Infrastructure has significant predictive effects on FDI although the effect were more profound for natural resources and government expenditure. Using a granger causality approach, interest rate, natural resource endowment, government expenditure, inflation, infrastructure and international reserves were observed to granger cause FDI. The study recommends that policyholders and the government should also put in place measures that would maintain natural resources and spend on improving infrastructure and development as these attract foreign investments into the country.