Access to External Finance by Micro Small and Medium Manufacturing Enterprises in Kumasi Metropolis: Evidence on the Impact of Financial Management Practices.

The aim of this study was to analyse how financial management practices of Micro, Small and Medium Manufacturing Enterprises (MSMMEs) affect access to external finance in Ghana. Specifically, the study analysed the effect of preparation and usage of financial information, business plan, capital budgeting and working capital management on access to external finance of MSMMEs in Ghana. The study employed Logistic regression on a sample size of 361 MSMMEs. The study found that MSMMEs’ preparation and use of financial information, business plan and capital budgeting increase the probability of MSMMEs accessing external finance. It is recommended that MSMMEs incorporate good financial management practices in their operations in order to enhance their access to external finance. Key words: Micro, Small and Medium Manufacturing Enterprises, Financial management practices, Access to finance, Logistic regressio

Access to Versus Usage of External Finance by Micro Small and Medium Enterprises in the Kumasi Metropolis

The main aim of this study was to analyze access to and usage of external finance by micro, small and medium manufacturing enterprises (MSMMEs) in the Kumasi Metropolis. According to Beck, Demirgüç-Kunt and Honohan, (2009), access to finance refers to the possibility that individuals or enterprises would make use of financial services, including credit, deposit, payment, insurance and other risk management services. Access to finance should be distinguished from the actual use of financial services, because non-use of finance can be voluntary or involuntary. Voluntary non-users of financial services have access to but do not use financial services either because they have no need for those services or because they decided not to make use of such services due to cultural, religious or other reasons. Using a sample size of 361 micro, small and medium manufacturing enterprises in the Kumasi Metropolis, it was found that whereas 34.35 percent of respondents used external finance, 42.38 percent of respondents had access to external finance. Thus, access was broader than usage. Though access was reasonably high, a number of respondents who could not access external finance could not do so because of various reasons that prevented them from assessing external finance. Notable among them were high cost of finance, cumbersome application process, long time in securing external finance and collateral requirements. It is recommended that providers of external finance should create conditions that will encourage owners/managers of MSMEs to access external finance. These include reducing the cost of finance, simplifying the application process and relaxing the collateral requirements. Keywords: access to finance, usage of finance, voluntary exclusion, involuntary exclusion, external finance, micro, small and medium manufacturing enterprises.

Corporate Social and Environmental Auditing: Perceived Responsibility or Regulatory Requirement?

This paper aims to explore and develop understanding of auditing specifically in the context of social and environmental disclosures by corporate entities. The paper is framed within a theoretical conception and is primarily literature-based. The purpose is to seek an understanding of the basis of financial auditors carrying out social and environmental audit in order to provide a basis for future research work. The study finds that, aside regulatory issues, one major motivating factor for auditors conducting social and environmental audit is as a result of and the relationship between the audit company and the society and/or stakeholder groups of interest. The study establishes that, even though statutory auditors as part of their work have also embraced the reviewing of social and environmental disclosures by management, for now, there are no regulatory standards backing the concept. The study therefore calls on accountancy regulatory bodies on the need for immediate formulation and implementation of standard policy to that effect. The implications of the study relate to the need to improve the insightfulness of social and environmental reporting and the possibility of the accounting literature offering more insights to the social and environmental auditing. Keywords: Social audit, Environmental audit, Corporate Disclosure

Does financial sector development cause investment and growth? empirical analysis of the case of Ghana

This article examines whether financial sector development has ‘caused’ economic growth and investment in Ghana between 1970 and 2007. As a proxy for financial sector development we use credit to private sector as per cent of GDP, bank liquid reserve – asset ratio and liquid liability as a per cent of GDP. We use GDP growth as a proxy for economic growth and real domestic investment for investment growth. The dynamic interactions between the growth of real Per capita Gross Domestic Product, real domestic investment and indicators of financial sector development are investigated using the concept of Granger Causality after testing for cointegration using Johansen techniques. The empirical results obtained by the Johansen method suggest the existence of a stable long-run relationship between growth rate and financial sector development indicators identified in the study. The same is true for investment growth. However, with the exception of credit to private sector where the causality runs from economic growth only, we find bidirectional causality between economic growth and financial sector development indicators. For investment growth, the causality runs from investment growth to financial sector indicators except between investment growth and Liquid liability where bidirectional causality recorded. The article establishes that, in an overall sense, economic and investment have ‘caused’ financial sector development in Ghan

Credit Risk Management and Financial Performance of Listed Banks in Ghana

The purpose of this study was to examine the effect of credit risk management on the performance of selected listed commercial banks in Ghana. The study used secondary data collected from seven (7) banks listed on the Ghana Stock Exchange for a period of ten (10) years covering 2007-2016 with a total of seventy (70) observations. The credit risk management variables (independent variables) used were non-performing loans, loan loss provision, capital adequacy, with bank size (as controlling variable) whiles the financial performance of commercial banks (as dependent variable) was measured using return on asset. The data was examined using standard descriptive statistics and fixed effect model for hypothesis testing. Based on the test conducted on the data collected and the analyses of the results, this study found a significant relationship between the credit risk management variables (NPL, CAR and SIZE) and the profitability of listed banks in Ghana. In general, banks need to maintain an optimum level of CAR as per regulatory requirement so that they will not have difficulty in meeting their financial obligations, be able to absorb any financial shocks that may arise, protect their depositors’ investment and thus promotes the stability of the financial system. The study further recommends for banks in Ghana to control and monitor NPL, and keep the level of NPL as low as possible by emphasizing more on the ability of customers to pay back before credit approvals are given, a practice that will enable banks to achieve higher performance. Keywords: Non- Performing Loans, Loan Loss Provision, Capital Adequacy Ratio, Return on Assets, Ghana Stock Exchange, Fixed Effect, Random Effect. DOI: 10.7176/RJFA/11-6-05 Publication date:March 31st 202

Does financial sector development cause investment and growth? empirical analysis of the case of Ghana

This article examines whether financial sector development has ‘caused’ economic growth and investment in Ghana between 1970 and 2007. As a proxy for financial sector development we use credit to private sector as per cent of GDP, bank liquid reserve – asset ratio and liquid liability as a per cent of GDP. We use GDP growth as a proxy for economic growth and real domestic investment for investment growth. The dynamic interactions between the growth of real Per capita Gross Domestic Product, real domestic investment and indicators of financial sector development are investigated using the concept of Granger Causality after testing for cointegration using Johansen techniques. The empirical results obtained by the Johansen method suggest the existence of a stable long-run relationship between growth rate and financial sector development indicators identified in the study. The same is true for investment growth. However, with the exception of credit to private sector where the causality runs from economic growth only, we find bidirectional causality between economic growth and financial sector development indicators. For investment growth, the causality runs from investment growth to financial sector indicators except between investment growth and Liquid liability where bidirectional causality recorded. The article establishes that, in an overall sense, economic and investment have ‘caused’ financial sector development in Ghan

The Hydraulic Conductivity of Soils under Continuous Maize (Zea May) Cultivation

The severity and scope of our modern day practices in the last few centuries on the hydraulic conductivity of soil has affected its ability to control water infiltration and surface runoff. Soils exposed to human impact are often stripped of the organic-rich upper horizons, thereby increasing bulk density and reducing soil porosity. The study saw to determine the effects of continuous cultivation on the hydraulic conductivity, bulk density and porosity of soil. The hydraulic conductivity was measured with ring infiltrometer. Hydraulic conductivity was observed to decrease with increasing years of soils cultivation indicating a high impact of land use on this soil property. Hydraulic conductivity (Ks) values of 0.189±0.020cmh-1, 0.162±0.023cmh-1, 0.097±0.011cmh-1, and 0.078±0.028cmh-1 were respectively recorded for undisturbed forest, one year cultivated soil, two years cultivated soil and three years cultivated soil. The dry bulk densities obtained in forested soils, one year cultivated soil, two years continuous cultivated soils and three years continuously cultivate soil were 0.991±0.047gcm-3, 1.025±0.031gcm-3, 1.215±0.102gcm-3, and 1.332±0.074gcm-3 respectively with the least occurring on forest soils owing to high organic matter content and abundant burrowing fauna. To conclude, the study revealed that soil hydraulic conductivity, bulk density and porosity are time-variant and this fact should not be neglected in soil water flow modeling. Keywords: Hydraulic conductivity, bulk density, porosity and continuous cultivation

Analysis of Socio-Demographics of Necessity-driven Entrepreneurs in Selected Cities in Ghana

The study analysed the dynamics of necessity-driven entrepreneurs, using the sociological approach to start-ups. The paper explored the risk appetite and the entrepreneurial potential of those involved in the street hawking business. Utilising the sequential transformative design, structured interviews were used to collect data from 306 street hawkers in Accra, Kumasi, and Cape Coast. Subsequently, 25 follow-up interviews were conducted, using a structured interview guide. Data were collected over ten months due to the complex nature of the respondents of the study. Descriptive statistics and texts were used to analyse the data. The results indicated that the majority of the respondents had only basic education or no formal education. Furthermore, the respondents were mostly women and young people without formal jobs nor any means of livelihood. The study has implications for policy on education, especially basic and adult education, as several of the respondents barely have basic education. There needs to be a social intervention programme to equip the street hawkers with the right employable skills to help develop their skills and promote the growth of their businesses. The paper also makes a case for nurturing their skills as a means of poverty alleviation

Deforestation in forest-savannah transition zone of Ghana: Boabeng-Fiema monkey sanctuary

Forests provide many resources, ecosystem services and absorb carbon dioxide, which helps in climate regulation. In spite of the enormous benefits of forests, the issue of deforestation is still ongoing. There has been a continuous decline in forests globally and the forest area of Boabeng Fiema Monkey Sanctuary (BFMS) in Ghana is facing a similar threat. The aim of the study is to determine the different forest cover types and changes in the forest of BFMS. Satellite images for the years 1992, 1998, 2004, 2010, 2016 and 2018 were downloaded. Unsupervised and supervised classification were performed to determine the different forest cover types and remote sensing software was used to detect the changes in the forest cover. The forest cover was classified into six classes; closed forest, open forest, savannah woodland, savannah, farmlands and built-up area. Available data suggests that between 1992 and 2018, closed forest decreased by 242.19ha, open forest increased by 122.85 ha, savannah woodland increased by 7.47ha, savannah increased by 6.48 ha, farmland increased by 39.39ha and built-up area increased by 65.7ha. The changes in closed forest, open forest, farmland and built-up were all significant. Decreasing forest cover of BFMS is a threat to sustainable ecotourism since the forest serves as a habitat and food source to the monkeys. This research serves as guide to other researches aiming at determining forest cover changes in forest-savannah transition zones. In addition, the results have produced an inventory of the forest, which will help forest resource managers sustainably manage the forest