Browsing by Author "Abasi, A.K."
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Item Corporate Governance, Shareholder Activism and Firm Performance in Ghana(University of Ghana, 2015-07) Abasi, A.K.; Abor, J.Y.; Agbloyor, E.K.; University of Ghana, College of Humanities, Business School, Department of Banking and FinanceThis study reexamines the effect of shareholder activism, as a corporate governance mechanism, on firm performance. The owners of the firm (the shareholders) employ the managers (the agents) to manage the firm for them but this employment contract has the potential risk of adverse selection and moral hazard. Hence there is the need for the shareholders to be active and monitor the firm. This constitute shareholder activism. But the argument is whether shareholder activism improves firm performance? Previous studies have found divergent conclusions because they all used the traditional accounting performance measure (ROA) which is not comprehensive enough because it does not account for the cost of equity. This study adopts contemporary value based performance measure, which is Economic Value Added (E.V.A) and Market Value Added (M.V.A) to measure firm performance from 2007 to 2013. These performance measures captures both costs of debt and equity which is able to show the true value of the firm. The regression results show that shareholder activism actually improves firm performance (E.V.A). Implying that shareholders should be active investors and monitor their firms because monitoring improve shareholder wealth. Investor conference should also be encouraged to improve manager-shareholder relations so as to mitigate the agency problem.Item Sectoral Loan Portfolio Concentration and Bank Stability: Evidence from an Emerging Economy(Journal of Emerging Market Finance, 2019-12-20) Kusi, B.A.; Adzobu, L.; Abasi, A.K.; Ansah-Adu, K.In this study, the effect of sectoral loan portfolio concentration on bank stability is investigated in the Ghanaian banking sector between 2007 and 2014. Specifically, we investigate the linearity and non-linearity effects of sectoral loan concentration on bank stability given the limited exploration of this nexus. Employing a two-step generalized method of moments (GMM) robust random and fixed effects panel models of 30 banks, the study provides evidence showing that sectoral loan concentration weakens the stability of banks. This confirms the concentration-fragility hypothesis and the diversification theory of traditional banking but may promote bank stability beyond a certain threshold point. This implies that bank sectoral loan concentrate has a direct non-linear U-shape effect on bank stability in Ghana. We argue that although sectoral loan concentration may weaken stability of banks in the short run, it may however enhance the stability of banks in the long run through prolonged expert knowledge, experience and understanding of sectors. From these findings, policymakers, regulators and bank managers must not only develop and design policies and regulations that prohibit sectoral loan concentration but should also incorporate plans and policies that encourage banks to develop core competence and competitive advantage to take advantage of advancing bank stability through sectoral loan concentration.