Abstract Risk and tracking error budgeting was originally adopted by large institutional investors, including pension funds, plan sponsors, foundations, and endowments. More recently, risk and tracking error budgeting have gained popularity among financial advisors, multi-managers, fund of funds managers, high net worth individuals as well as retail investors. These techniques contribute to the portfolio optimisation process by limiting the extent to which a portfolio can deviate from its ben...
ABSTRACT Motivated by the need to analyze the effect of effective corporate governance mechanisms on the enhancement of the loan quality of banks in emerging economies, this study aims to analyze the effects of executive compensation and ownership structures of Ghanaian banks on the quality of loans. It also examines the moderation effect of ownership structure on the relationship between compensation and loan quality. The study uses a panel data on 26 Ghanaian banks over the period, 2003-201...
ABSTRACT This academic work peeps at the consequence of financial growth on income disparity in Ghana using an Autoregressive Distributive Lag method for the period 1970 to 2012. An Unrestricted Error Correction Technique was adopted to analyse the long and short-run effects of these variables. The goals of the academic work were to uncover the consequence of growing financial sector and financial unpredictability on income disparity in Ghana. The experimental outcomes discovered that the out...
ABSTRACT The inferences of competition for bank stability, profitability and efficiency have been the subject of much debate, yet they remain controversial and inconclusive. Identifying channels through which competition affects bank performance may improve our understanding of the inconsistent findings in the literature. Hence, this thesis analyses the implications of competition and financial freedom for bank performance. The study also examines the determinants of bank profit persistence. ...
ABSTRACT Small and Medium Size Enterprises (SMEs) play an important role in the economic development of nations. In Ghana SMEs are the key providers of employment and income, and the drivers of innovation and growth in the economy. Observing from statistics available however, it is very disturbing to note that the failure rate of SME businesses is quite high, while surviving SMEs are not able to sufficiently expand to provide the needed employment necessary to stimulate economic growth. Again...
ABSTRACT The factors that determine the level of universal bank lending rate are important to policy makers, investors, the banking industry and the public at large. The market for loans from universal banks is competitive and rates on these loans have tendency to reduce the deposit rate and increase the cost of borrowing. This study sought to investigate the determinants of lending rates in the universal banks in Ghana by answering the, what are the determinants of lending rates of Universal...
ABSTRACT This study has primarily sought to examine the effect of macroeconomic volatility on foreign direct investment in Africa. The investigation covers the period between 1980 and 2010 for twenty-nine countries. The main variables of concern were Exchange rate volatility and inflation volatility, GDP Growth volatility and Real interest rate volatility. The ARCH and GARCH Models introduced Engle (1982) and Bollerslev (1986) were used to model the volatility of the variables. The volatile v...
ABSTRACT Policymakers and governments have raised concerns about the rate at which global climate change is occurring. The adverse impact of climate change on the environment and ecosystems has necessitated the formulation of mechanisms to address its effects. Empirical evidence has shown that climate change greatly affects health, water and food supply, and economic growth in Africa. However, given the emerging nature of climate change studies, little research has examined its impact on inco...
ABSTRACT This study examines the relationship between countries’ compliance with AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) regulations and foreign direct investment. This study, to the best of the author’s knowledge, is the first to establish a link between AML/CFT compliance and FDI, with FDI being the dependent variable and AML/CFT compliance, the independent. The research uses a sample size of 74 FATF member states and extracts data on their FDI net infl...
ABSTRACT The study investigates the profitability of banks within 41 African countries from the period 2004 to 2013 at different levels of credit information sharing using the depth of credit information index to measure the extent of credit information sharing (i.e. the rules/laws and practice affecting the coverage, scope and accessibility of credit information available either through private bureaus/public registries) in Africa. The extent of credit information sharing is also disaggrega...
ABSTRACT This study examines the joint impact of fiscal and monetary policy shocks on some fundamental macroeconomic indicators in three emerging African economies: Ghana, Nigeria and South Africa. The study uses a vector autoregressive (VAR) method with recursive ordering to explain the relationships between the variables over the years 1970 to 2013. The macroeconomic variables considered include real GDP, Inflation and Trade. Granger causality tests are used to determine the causality beha...
ABSTRACT Few empirical studies have been done on the bank interest rate spread in the context of Africa as a whole. However, these studies failed to explain the possible effects of agency costs on the bank interest rate spread in Africa. This study, therefore, depending on bank-level data on two hundred and ten (210) banks in twenty-eight countries in Africa, and controlling for macroeconomic variables, bank-specific variables, regulatory as well as industry-specific factors, we employed the...
ABSTRACT In recent times, health insurance which seeks to reduce the financial bottlenecks that surrounds access to healthcare has gained much prominence in low-income countries. This may partly be attributed to the observed negative impacts of unanticipated health shocks on poor and vulnerable households in developing countries. A number of African countries in recent years have piloted universal health insurance schemes to provide some basic coverage for all their citizens. However, the imp...
ABSTRACT Earlier studies on the Ghana stock exchange failed to consider the influence of institutional ownership and board committee on the financing decisions of the firms. This study examines the impact of institutional ownership and board committee on capital structure decisions. The study also examines the nature of the corporate board and financing pattern of the firms for the period under investigation. Twenty-nine (29) firms out of the total number of thirty-four (34), on the Ghana St...
ABSTRACT This study set out to examine the effect of sovereign rating on funding cost and profitability of banks in Africa. Using over 300 banks operating in Africa from 2006 to 2012, the study investigates sovereign ratings‟ impact on bank profitability and funding cost. The long term domestic sovereign ratings announced by Fitch and Standard & Poor‟s during the period under study were used. The regressions were estimated using Prais-Winsten and the Generalized Method of Moments estimati...