Browsing by Author "Boadi, I."
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Item Bank-based and market-based development and economic growth: an international investigation(Studies in Economics and Finance, 209-07-26) Osarfo, D.; Boadi, I.; Boadi, P.Purpose – The purpose of this paper is to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60countries. Design/methodology/approach – This study uses fixed effect and generalized method of moments (GMM) to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60 countries. The study further controls regional effects and the Asian crisis, as well as the global economic crisis. Findings – The empirical results of the study revealed that market-based development positively affects economic growth. Besides, market-based financial development indirectly promotes investment, which has the potential to strongly enhance growth. The findings of this study, therefore, provide more support to promarket- based financial development policies in these regions. Interestingly, bank-based development has no direct impact on development, but indirectly encourages investment, which also promotes growth. Originality/value – This paper is the first of its kind to empirically examine fixed effect and GMM to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60 countries.Item Diversity and return: the impact of diversity of board members’ education on performance(Corporate Governance (Bingley), 2019-05-07) Osarfo, D.; Boadi, I.Purpose – This paper aims to examine the impact of diversity of board members’ educational qualifications on the financial performance of banks in Ghana. Design/methodology/approach – The present study applies system generalized methods of moments as an econometric model in carrying out the analysis. The study yielded a usable sample of 28 banks spanning from2001 to 2016. Findings – The paper concludes that the Ghanaian banking sector profit diverges and invalidates the convergence theory or ‘‘catch-up effect’’. Specifically, educational qualifications of board members are relevant to banks’ financial performance. Across all the models used, board members with a first degree have a significant positive impact on performance. The opposite is the case for board members with Doctor of Philosophy (PhD). Research limitations/implications – Unobservable characteristics such as entrepreneurial skills and intellectual competence experiences are excluded from the study because of the difficulties in measuring these variables. Notwithstanding, the exclusion of these characteristics does not invalidate the general outcome of the study. Originality/value – The present study examines the impact of diversity of board members’ educational qualification on financial performance in the context of Sub-Saharan Africa, particularly Ghana. It also extends the existing literature by decomposing the banking sector into listed, non-listed, foreign and domestic banks.Item Financial inclusion: a catalyst for financial system development in emerging and frontier markets(Journal of Financial Economic, 2023) Ofosu-Mensah, J.A.; Yiadom, E.B.; Sarpong-Kumankoma, E.; Boadi, I.Purpose – This study aims to examine the relationship between financial inclusion and financial system development in emerging and frontier markets. Design/methodology/approach – Using data across 35 countries over 19 years (2004–2022), the improved GMM estimation technique reveals that financial inclusion significantly contributes to the development of financial systems. Findings – The study uses a segmented approach, dividing financial development indices into subindices: financial depth, financial access and financial efficiency. Indicators of bank financial inclusion show a positive and highly significant relationship with bank depth and access but a negative relationship with bank efficiency. Similarly, indicators of the debt market and stock market financial inclusion demonstrate positive relationships with market depth and access but negative relationships with debt and stock market efficiency. The study further examines composite indexes of financial inclusion for bank, debt and stock market segments, finding strong and highly significant relationships with market development. These results underscore the importance of promoting financial inclusion across all segments of the financial sector to achieve an inclusive financial system. Practical implications – The implications of this research highlight the need for policymakers and practitioners to implement policies and regulations that enhance financial inclusion and foster the development of robust financial systems. By extending access to mainstream financial instruments and services, financial institutions can stimulate financial intermediation and support, thereby accelerating the development of the banking, debt and stock markets. Originality/value – The study is robust to the use of several indicators of financial inclusion and financial development, and it forms part of the early studies that examine the close relationship between the two variables.Item Technical efficiency in the Ghanaian banking sector: does boardroom gender diversity matter?(Corporate Governance, 2022) Boadi, I.; Osarfo, D.; Dziwornu, R.Purpose: The marginalization of women on boards is a heavily discussed topic across the world. especially in Ghana. Apart from estimating the link between boardroom gender diversity and technical efficiency of banks, this study aims to test the presence of upper-echelons theory in the Ghanaian banking sector. Design/methodology/approach – The study examines data from the 2000–2019 annual reports of 23 banks in Ghana. The stochastic frontier analysis is used to estimate the impact of boardroom gender diversity in technical efficiency of banks in Ghana. Findings: This study finds that greater boardroom gender diversity generates technical efficiencies for banks. The results remain unchanged after accounting for bank types (listed and non-listed). Thus, all banks benefit in terms of technical efficiency from more boardroom gender diversity. The upper echelons theory is validated in the Ghanaian banking context. Overall, the study supports pro-gender diversity on boards. Practical implications: The results have implications at corporate, social and national levels. It supports the need for policies that improve greater boardroom gender diversity. Originality/value: This study adds to the growing number of non-developed countries by investigating the link between the boardroom gender diversity and technical efficiency of banks in Ghana, a country which historically has had minimal female participation in the workforce. New insight is, therefore, offered into this relationship by using data which examines the technical efficiency of banks periods before and after the Women in Finance Charter in 2016.