The Link between Quality of Governance and Stock Market Performance: International Level Evidence

The present study investigates the link between quality of governance and stock market performance within the context of international markets. The study employed the Fixed Effect model using 23 countries with complete relevant data for the period spanning from 1996 to 2014. The study reveals that, quality of governance as captured by Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption significantly affect stock market performance. Varying effects are produced when the countries are decomposed into income classifications. What is more, the findings and suggestions of this study suggest that quality of government significantly affect foreign direct investment and could have interesting policy implications. The main value of this paper is to examine the link between quality of governance and stock market performance within the context of international markets

Diversification and Stability of African Banks

The present study empirically examines whether banks operating within Africa concentrate or diversify their incomes and loan portfolios and how these decisions affect their stability. The present study uses Generalized Methods of Moments (GMM) as the econometric tool in carrying out the analysis. The study shows that banks in Africa are relatively stable and well diversified. However, income diversification strategies do not enhance banks’ stability. Loan portfolio concentration guarantees a reduction in bank credit risk and boosts stability. Overall, loan portfolio concentration is therefore more important for stability than income diversification among banks in Africa

Does monetary poverty reduction through gender empowerment work?

AbstractMonetary poverty, characterized by the lack of financial resources necessary to meet basic human needs and participate fully in society, continues to be a pressing issue on a global scale. Despite various poverty reduction efforts, this problem persists, especially in many developing countries, including Ghana. Therefore, the current study examines the impact of women’s empowerment on monetary poverty reduction in Ghana. Using a Fixed-effect model (FEM) and dominance analysis (DA) as an estimation technique, this study uses the Ghana Socioeconomic Panel Survey, a coaction between the Economic Growth Center (EGC) at Yale University and the Institute of Statistical, Social, and Economic Research (ISSER) at the University of Ghana, Legon. The survey offers regionally representative data for 10 regions of Ghana available for Wave 1 (2010), Wave 2 (2014-15), and Wave 3 (2018-2019). Based on the dataset, the study concludes that women’s social empowerment reduces monetary poverty. across the study sample significantly contribute to poverty reduction in Ghana. The positive impact of women’s social empowerment on poverty reduction goes beyond individual households. Empowered women tend to invest more in their families and communities, leading to improved living standards, better health, and enhanced education opportunities. These effects help break the intergenerational cycle of poverty and promote sustainable development. To promote this, governments and policymakers should prioritize measures such as improving women’s access to education, healthcare, and financial services. Additionally, eliminating legal and societal barriers that hinder their participation in decision-making processes is crucial. Again, an inverse relationship was established between marriage age of households, households’ ability to read and monetary poverty. In terms of locality of residence, women of household heads and ecological zones, varied results are produced. This study is anticipated to be valuable in terms of originality since it provides a precise and coherent understanding of the genuine measure on women empowerment that must be placed, from the perspective of Ghanaian dataset, locality and ecological zones to reduce poverty more effectively

Determinants and challenges of supplying microlife insurance in Ghana

The mass adoption of microlife insurance products among low-income earners in Ghana is based on the increased risks to livelihoods normally neglected by mainstream insurance. Microlife insurance is crucial for not only providing insurable coverage for the cost of targeted threats to low-income earners but also providing incentives for anyone who seeks protection against economic losses. In this study, a holistic analysis of the determinants and challenges of supplying microlife insurance in Ghana is carried out using factor analysis with principal component analysis. Primary data were sourced from 193 respondents related to the development of microlife insurance products. Out of 20 critical determinants extracted for the supply of microlife insurance products, four principal groups/components were established. They include affordable but profit-oriented products, active consideration of consumer-oriented conditions, strong internal position and controls, and favourable external factors. Further, 39 challenges associated with supplying microlife insurance products were identified and divided into five major groups: poor premium income, asymmetric information, weak internal systems, increased industry-related challenges and unfavourable external factors. The findings could serve as a checklist for microlife insurers to develop measures to sustain microlife insurance products while they mitigate obstacles to improve net profits from products. The results could also stimulate dialogue within the insurance industry as well as the research community on advancing microlife insurance to support the general populace. However, the article is limited in scope and so caution must be exercised in generalising the application of the findings

Herding Behavior of Ghana Stock Market Participants: A Daily Analysis

This study investigates the herding behavior of Ghana stock market participants and its impact on stock returns. Using panel data of 38 equities listed on the Ghana stock market, the data spans from 2011 to 2019. Fixed effect model was used for all estimations. Overall, the study results failed to indicate evidence of herding behavior in the Ghana stock market. This result further indicates that at low levels, the market participants herd but at higher levels, there is the absence of herding behavior. In bull market conditions, market participants act in unison only at high levels. The result validates the assumption of the rational asset pricing model