Corporate social responsibility spending of commercial banks: determinants and consequence

The contribution of firms towards society in the form of corporate social responsibility has attracted significant concern for many stakeholders, especially among banks in Ghana. It is perceived that; banks especially do Corporate Social Responsibility just because they are the most profitable sector in Ghana. The study sort to examine the kind of relationship that exists between bank performance and CSR in Ghana. Also, to determine how bank size and profitability and it's listing status and foreign ownership influence CSR spending in Ghana. The study sampled 24 commercial banks over seven years from 2010 to 2016. The study analyzed data using statistical tools such as descriptive statistics, correlation analysis, and panel regression analysis. The study found out that engaging in CSR activities increases banks' profitability in Ghana, especially for ROE.  Besides, the study concluded that bigger and larger banks are more profitable than small companies, so they are more involved in CSR activities. The study also investigated whether foreign ownership and the listing status of banks influence CSR spending. On this aspect, the study found out that banks' listing status influences CSR spending, but foreign ownership does not. The result implies that listed banks are more public and faces more social pressure hence they spend more on CSR to legitimize their operations

It is not all about Reproductive Labour: Excluded Traditional Ventures and Rural Livelihoods among Women in Northern Ghana

In the era of rapid corporatisation and obsession with market-led growth, not much attention has been paid to people who have not been able to fully tap into the new paradigm. Rural women face additional difficulties owing to societal constructs that further limit their participation in the mainstream economy. They also face real dangers that the traditional economic ventures, they have historically relied on, are on the verge of extinction. Rural women in Dagbon[i] are now caught in a web: on the one hand, they have not migrated fully into the mainstream capitalist or what is often termed the “modern” economy; and, on the other hand, they are also losing a grip on their traditional economic strategies, which have historically formed the bedrock of community welfare.  In this paper, I explore some selected traditional economic ventures undertaken by women in rural Dagbon. I examine the appropriateness of these local economic ventures in enhancing welfare among rural households in Dagbon, and the relevance of these activities in responding to a variety of community needs, including cultural and religious purposes. It concludes with a call to pay more attention to understanding the deeper and underlying socio-cultural contexts in which women pursue livelihood activities in rural and traditional communities. Key words: Rural women; Dagbon, Traditional Economics, Livelihoods   [i] Dagbon refers to the area inhabited by the Dagomba ethnic group of Northern Ghan

Record Keeping and the Bottom Line: Exploring the Relationship between Record Keeping and Business Performance among Small and Medium Enterprises (SMEs) in the Tamale Metropolis of Ghana

This paper explores the relationships between record keeping and business performance among SMEs in Ghana. Relying on a sample of 100 SMEs in the Tamale Metropolis, and employing simple regression analyses and Pearson Correlation Coefficient, we found a positive correlation between record keeping and business performance. In particular, we show that the two variables are linearly related. After swapping both the dependent and independent variables in the estimated models, we found a more robust impact on record keeping when it depends on business performance than when the latter depends on the former. We however could not show which variable causes changes in the other, necessitating further research efforts in this direction. While recognising the impact of record keeping on business performance, we conclude that at least in our study area, other performance metrics such as improved customer relations, access to sustainable finance, technology diffusion, and expanding the frontiers of access to internal and international markets are equally critical drivers of SME performance. This calls for conscious and coordinates efforts aimed at enhancing the performance of SMEs in Ghana. Keywords: SMEs, Record Keeping, Business Performance, Entrepreneurshi

Causality and Cointegration Analysis: Evidence from the Brazilian Stock Market

Many studies have focused on examining the cointegration and causality between or among stock markets of different countries. This paper departs from these traditional inter-relationship studies through its investigation on the causality and cointegration between the Brazilian Stock Market (Bovespa) and a listed company (Petrobras) by employing the Granger causality test and error correction technique based on autoregressive distributed lag (ARDL) modelling approach to cointegration. We find empirical evidence of cointegration and that deviation from long-run equilibrium is corrected according to the speed of adjustment. In particular, a disequilibrium resulting from a shock to the stock market is corrected by 3.8% per week. Our findings also show a unidirectional causality running from Bovespa index to share price of Petrobras thus revealing the predictive power of the former. While our Granger causality finding is inconsistent with the preaching of efficient market hypothesis (EMH), it nonetheless fortifies the need for investors and financial analysts to closely monitor the movements of the Brazilian stock market index when investing (or analyzing changes) in Petrobras. Keywords: Bovespa, Petrobras, Cointegration, Causality, Equilibrium, Short-run, Long-ru

Capital Structure and Firm Performance of Non-Bank Financial Institutions (NBFIs) in Ghana

The study examined the relationship between capital structure and profitability of NBFIs in Ghana. A total of 42 NBFIs were sampled and data extracted from the financial reports from 2006 to 2015. Return on assets (ROA) and return on equity (ROE) were used as the dependents variables whiles capital structure measured as total debt to capital ratio (DR) is the main independent variable with firm size (SIZE), assets composition (ACOMP), credit risk (CRISK) and age of the firm as control variables. The descriptive analysis revealed that NBFIs are highly leveraged with 70% of their capital being liabilities and customers deposit the main source of finance.  The Pearson correlation as well as the regression results revealed that capital structure (DR) is positively associated with profitability of NBFIs in Ghana but statistically significant with only return on assets. On the control variables, firm size and assets composition were all positively associated with profitability of NBFIs in Ghana. The results suggest that so long as NBFIs can turn those deposits into loans (assets), their profitability will be enhanced as evidenced from the positive relationship with both assets composition and debt ratio. The results confirms that expectations of agency theory and is contrary to previous studies on the subject matter in Ghana on commercial banks. It can be concluded that NBFIs in Ghana are more efficient in granting and recovering loans from their liabilities which improves their overall profitability. Keywords: capital structure, performance, Non-bank Financial Institution

The effect of corporate governance on financial performance of rural banks in Ghana

Purpose: The study examined the influence of various corporate governance structures such as board size, board independence, board gender diversity and CEO duality on the financial performance of rural banks in Ghana. Research methodology: The study collected secondary data from the annual report of 30 rural banks for a 10-year period spanning 2010 to 2019. The data was coded into excel and exported into STATA where descriptive statistics, correlation analysis and regression analysis were adopted to answer the research questions. Results: The result shows that there was a positive but statistically insignificant association between CEO duality and ROA and ROE. The study further reveals a positive association between board size and ROA and ROE even though that of ROA was statistically insignificant. Also, board independence was found to be a significant determinant of rural bank financial performance In addition to the above, the study reported a negative association between gender diversity on the boards of the rural bank and ROA and ROE and both associations were statistically significant. Limitations: As a result of the lack of publicly available data on rural banks in Ghana, the study relied on only 30 out of the over 100 rural banks currently operating across the country. Contribution: The result of the study will help the Bank of Ghana and the ARB Apex Bank in their formulation of an appropriate corporate governance framework for rural banks in Ghana and enlighten managers of rural banks on corporate governance structures that enhance their financial performance in Ghana. Keywords: Corporate governance, Rural banks, Return on Assets, Return on Equity, Ghan

The Effect of Mergers and Acquisitions on Bank Performance in Ghana

The study examined the consequence of mergers and acquisition on bank performance in Ghana. Specifically, the study investigated the effect of mergers and acquisition on net profit margin, return on assets and return on equity of commercial banks in Ghana. Data from the annual reports of eight (8) commercial banks over a 10-year period (2009-2018) were collected and analysed by the use of descriptive statistics, correlation analysis, and regression analysis. The findings revealed a negative and significant association between mergers and acquisition and net profit margin. There existed a positive but statistically insignificant relationship between mergers and acquisition and return on assets of commercial banks in Ghana. Further, there was a negative but statistically insignificant relationship between mergers and acquisition and return on equity. The results, however, could not establish a conclusive evidence of the impact of mergers and acquisition on bank performance, implying that mergers and acquisition might not necessarily improve bank financial performance

Factors that influence bond markets development in Ghana

The various financial crises all over the globe underscore the need for economies to have vibrant bond markets to augment their financial portfolios.  Among other benefits, this will enable them to support rapid and sustained infrastructural development, which in turn will lead to swift economic growth.  The small size of the Ghanaian bond market, the accompanying huge infrastructural challenges, the overdependence on external debt and Deposit Money Banks (DMBs), the lopsided empirical evidence, which is concentrated on western  and Asian economies coupled with mixed findings in related studies call for the need to examine the factors that promote  the  country‘s bond market  development. This  study  therefore  examines  the influence  of  bond market  determinants  on  the development of the bond market  in Ghana. Data was collected from secondary sources covering a period from 1980 to 2015. The Vector Error Correction Model (VECM) is employed as technique of data analysis.  The Augmented Dickey-Fuller (ADF) stationarity test, the Johansen Co-integration test and other tests are carried out to ensure the robustness of the results.  The findings of the study reveal that bank size, external debt, money supply and size of the economy are significant determinants of corporate bond market development in Ghana.  Also, level of economic development, budget deficit and bank size are significant determinants of government bond market size in Ghana.  However, bank size, money supply and external debt are seen to be the most important and significant drivers of total bond market size in Ghan

The Effect of Ownership Structures on Audit Fees of Listed Firms in Ghana

Research aims: The study examined the effect of ownership structures on audit fees of listed firms in Ghana. The study used four indicators to measure ownership structure: managerial ownership, foreign ownership, government ownership, and substantial (block) ownership.Design/Methodology/Approach: The study sampled 21 listed non-financial firms over ten years, covering the period 2010 to 2019. The study also relied on secondary data extracted from the financial statement of these listed firms. Data were analyzed using descriptive statistics, correlation analysis, and panel regression analysis.Research findings: The study results showed a positive and significant association between foreign ownership and audit fees in Ghana. The study further found a positive and significant relationship between block ownership and audit fees. The results, however, uncovered an insignificant association between government ownership and audit fees. Furthermore, the study reported a positive coefficient between block ownership and audit fees, and the relationship was statistically significant.Theoretical contribution/Originality: The study is among very few studies that have examined ownership structures such as foreign ownership, managerial ownership, government ownership, and block ownership on audit fees in a developing country context and Ghana.Practitioner/Policy implication: This study found that the higher agency conflict through ownership structures will give rise to the higher audit fees paid to external auditors, which managers and auditors should consider in future assignments.Research limitation/implication: The study is limited by geographical area (Ghana), and as such future studies can conduct cross-country analysis of ownership structures on audit fees

The Effect of IFRS Adoption on Foreign Direct Investment in Africa

Adoption of International Financial Reporting Standards (IFRS) is supposed to help enhance comparability of financial statement, improve the quality of financial reporting and accounting information of businesses in a country. This is expected to help improve Foreign Direct Investment (FDI) in the adopting countries. This study examined the effect of IFRS adoption on FDI inflows in Africa. Unlike previous studies that sample both adopting and non-adopting countries, this study sampled only Africa countries that have adopted IFRS to determine whether the adoption has improved FDI inflows. To achieve this objective, 20 African countries that have adopted IFRS were sampled covering a period 1980 to 2015. Data was sourced from The World Bank financial and Economic Data. Control variables such as GDP growth, openness of the economy, government debt and population growth were included in the model. The correlation and regression analysis showed that IFRS adoption has a positive and significant influence on FDI inflows in Africa. On the other hand, open economy, government debt and population growth had a positive and significant association with FDI. Overall, the results show that African countries that want to improve FDI inflows must improve the quality of their reporting environment by adopting IFRS