Corporate Capital Structure Determinants of Listed Firms in West African Monetary Zone – A Review of Related Literature

In the financial management arena, corporate capital structure has attracted intense debate and scholarly attention over the past four decades. However, in the context of countries in the West African Monetary Zone (WAMZ), capital structure has received a scanty attention and most literature on this issue modelled only the firm specific determinants in their studies. Practically, managers also like to consider market conditions, like GDP growth, interest rate, inflation, stock market performance and other economic factors when deciding for financing mix (Antoniou et al, 2002). This paper provides new insights into the capital structure theory by proposing a more superior model which takes into account both the additional important and “lately” evidence firm specific factors and macroeconomic factors on capital structure as opposed to the existing models for capital structure.  Both theoretical and empirical literature is reviewed. Conclusions are drawn based on the findings. Keywords: key words, capital structure, determinants, related literature, Ghana, Nigeria, WAM

Risk Management Practices among Commercial Banks in Ghana

The study compares the risk management practices among commercial banks in Ghana.  Using the multiple regression model the paper examines the determinants of risk management practices among the selected commercial banks. Cross-sectional research design was used. A standard modified questionnaire from (Hussien and Faris, 2007), were administered to risk analysts and senior risk managers of the sampled banks at the headquarters offices and branch head offices in Accra and Kumasi. The results show that the sampled banks are somewhat efficient in managing risk, and risk monitoring and control is the most influencing variable in risk management practices. The results again show a significant difference among commercial banks in the practice of risk identification, understanding risk and in risk monitoring and control except risk assessment and analysis. Keywords: risk, management, commercial banks, Ghana

African financial markets in a storm: Cryptocurrency safe havens during the COVID-19 pandemic

The COVID-19 pandemic provides the first widespread bear market conditions since the inception of cryptocurrencies. We test the haven properties of cryptocurrencies for African stocks and commodity markets in a pandemic implementing the frequency domain spillover index. Data spans 11th August 2015 to 28th August 2020 at a daily frequency. Findings show weak interconnectedness across markets suggesting non-contagion risk and that cryptocurrency are safe havens for African stocks and commodity indices from the medium-term. We find the major transmitters of spillover effects across markets to be time-varying and heterogeneous. This study provides significant risk diversification benefits for policymakers and investors in the African financial markets

The dynamic relationship between bank risk and corporate governance in Africa

This paper investigates the nexus between corporate governance and bank risk in Africa using annual data of 635 banks from 48 countries for the period 2000 to 2019 in a panel GMM approach. Our bank risk variables are loan loss provision to net interest revenue (LLPNR) and loan loss reserve to gross loan (LLRGL). The corporate governance variables are board size, female directors, role duality, board meetings, and independent directors. Findings indicate that bank risk measured by LLPNR has significant negative association with female directors, role duality, and frequent board meetings. However, bank risk measured by LLRGL has significant negative connections with board size, and independent directors, but positive connections with female directors and board meetings. This study provides a guide to regulators, shareholders, and management of banks in adopting appropriate corporate governance practices to reduce risk

Do cryptocurrencies and crude oil influence each other? Evidence from wavelet-based quantile-in-quantile approach

This study investigates the asymmetric shock transmission mechanisms between seven large cryptocurrencies and crude oil at different market conditions across time. Wavelet technique was used to decompose the daily return series of the assets into wavelet scales to capture trading horizons. We applied quantile regression (QR) and quantile-in-quantile Regression (QQR) on the decomposed series to capture the bear (bull) market conditions. Applying the QR, we found Ethereum, Steller, Ripple and Monero as hedges for oil market volatility at all market regimes from medium to long terms. The QR undermined the hedging properties of Bitcoin, Litecoin and Das, suggesting possible spread of market disruptions from these markets to crude oil market. We observe from QQR that the assets have negative influence on each other at bear market but positive influence at bull market across time, signifying hedging possibilities for both assets in bear market. The significance of our finding is strengthened by the recent rise in the market share of cryptocurrencies

Marketing inclusive banking services to financially vulnerable consumers: a service design approach

Purpose To explore how inclusive banking services are marketed to financially vulnerable consumers (FVCs) in Ghana from the perspective of managers. This study aims to explore this under-researched area and contribute towards a transformative service research in the country. Design/methodology/approach This study adopted a multiple case study research approach to analyse six banks, including commercial, development, investment and rural and community banks. Specifically, semi-structured interviews and archival documents were used to collect data from the perspectives of bank managers. Findings The empirical research based on practical and theoretical models shows that Ghanaian banks design an array of financial products and services (FPS), adopt innovative traditional marketing strategies and apply inclusive technologies to reach out to the FVCs. Research limitations/implications The authors conducted this study on six banks in Ghana; thus, service researchers are cautioned when generalising the findings and conclusions in other contexts beyond the country of focus. Practical implications This study offers practical ideas to guide marketers to better understand how banks market their inclusive banking services to FVCs. Social implications This paper provides implications for addressing financial inclusion amongst the “unbanked”, “underserved” and “unserved” collectively known as the FVCs and how Ghanaian banks design FPS to improve service research and well-being outcomes. Originality/value This study provides vital information to policymakers in designing FPS aimed at achieving an inclusive financial system to improve the well-being of FVCs in Ghana

Co-movement of cryptocurrencies and African stock returns: A multiresolution analysis

This paper investigates the co-movement between cryptocurrencies and African stock returns to uncover their degree of association and global portfolio diversification benefits implementing the three-dimensional continuous Morlet wavelet transform technique. Data span 10 August 2015 to 10 December 2021 at daily frequency. The results suggest high degrees of co-movement between the asset markets at medium and lower frequencies implying that stock markets in Africa are highly exposed to cryptocurrency market disruptions from the medium term and that international investors seeking to hedge their price risk in African stock markets using cryptocurrencies may have to look at the short term. The phase difference arrow vectors implying lead (lag) effects are time-varying and heterogeneous showing no particular cryptocurrency or stock market as leader or follower. Different markets have the potential to lead or lag other markets at varying scales which may induce arbitrage opportunities for international and local investors. Our findings provide insights for policymakers, regulators and international investors as an economy's monetary policy can be affected by the connections between the domestic capital market and other markets globally