Browsing by Author "Gemegah, A."
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Item Corporate Governance and Transparency. Evidence from Stock Return Synchonicity(University of Ghana, 2013-06) Ntow-Gyamfi, M.; Gemegah, A.; Bokpin, G.A.; University of Ghana, College of Humanities, Business School, Department of Banking and FinanceThe purpose of this study was to investigate the extent of stock return synchronicity on the Ghana Stock Exchange. The study compared synchronicity levels across firm size, age and industry type. Finally, the study examined the influence of corporate governance on transparency while using stock return synchronicity as a measure of transparency. A ten year panel data spanning from 2000 to 2009 collected from 31 listed firms in Ghana was used. Daily stock returns were also collected from the Ghana Stock Exchange. A trend analysis of synchronicity was made for the 10 year period. A non-parametric comparison was made between the synchronicity levels of small and large firms, old and new firms, financial and non-financial firms using the Wilcoxon Rank Sum Test. In the empirical estimation, the study uses the panel correct standard errors as well as the Generalized Least Square techniques to provide robust evidence of governance influencing synchronicity through the information environment. The study found that newly listed firms are generally more synchronous while larger firms also exhibited higher levels of R2. The study found Board Size, Board Composition and CEO duality to be significant determinants of transparency proxied by stock return synchronicity. Both the Panel Corrected Standard Errors and the Generalized Least Square estimations provided consistent results. After correcting for possible thin-trading effect using the Dimson’s Beta approach to estimating synchronicity, governance still remains significant determinant of transparency. The study recommends that listed firms choose smaller boards over larger boards since the free rider effect associated with larger boards can increase stock return synchronicity; hence, reducing transparency. Companies should encourage CEO duality but this must be done cautiously in order not to dilute the independence of the corporate board. Companies should increase the proportions of non-executive directors on their boards since this could negatively influence synchronicity and impacts positively on transparency.Item Corporate Governance, National Culture, and Corporate Debt Maturity Structure: Evidence from Sub-Saharan Africa(University of Ghana, 2013-06) Laryea, E.A.; Bokpin, G.; Gemegah, A.This study examines the impact of corporate governance and national culture on the debt maturity structure of firms in sub-Saharan Africa. A relatively unexplored area world- wide, the dearth of literature on debt maturity structure in Africa necessitates this study. This study sought to understand the impact that the corporate governance systems of sub- Saharan African firms have on corporate debt maturity on the basis of the argument that the debt maturity structure of a firm could augment the efforts of corporate governance systems in alleviating the agency problem of the firm. The study also found it worthwhile to explore the influence of national culture on the debt maturity decision based on the premise that the financial contractual environment within which the debt contract is agreed upon is made up of both formal and informal institutions like norms and values. The study employs a two-stage least square estimation technique and results suggest that the debt maturity structure of firms are explained by the corporate governance systems in place as well as the national culture of the people in the nation. The study therefore suggests that these two factors be carefully considered when the debt maturity structure decision is being made. The study finds that the financial systems in a country tell on the debt maturities of firms as well and recommends that in order to make more long-term debt available for development, policy makers must pay more attention to capital market development. The study also suggests that firm debt maturity decisions should be made bearing in mind the corporate governance system in place.Item The demand for micro insurance in Ghana(Journal of Risk Finance, 2011-05) Akotey, O.J.; Osei, K.A.; Gemegah, A.Purpose – The purpose of this paper is to identify the factors which influence the demand for micro-insurance services among the informal sector workers of Ghana who are quite vulnerable to various risks in the economy. Design/methodology/approach – The study adopts a quantitative technique based on primary data sampled randomly from 100 informal sector workers from four major market centers in Accra, Ghana. The probit regression model was used for the empirical investigation. Findings – Empirical investigation using the probit model indicates that premium flexibility, income level and nodal agency are significant determinants of micro-insurance demand. Insurance knowledge, expectation (trust) and marital status were also found to have positive and significant impact on the demand for micro insurance. Interestingly, the empirical analysis shows that formal education is not a significant determinant; rather one's level of insurance knowledge has a positive and significant impact on micro-insurance demand. Social implications – Insurers must consider the nature of the cash-flow of informal workers in the design of premiums. The government must integrate micro insurance into its poverty reduction program. Originality/value – The micro-insurance market is very new and unresearched in Ghana. This foundational study is, therefore, very original and a most valuable guide to commercial insurance companies which want to venture into this huge untapped opportunity in the Ghanaian informal sector. © 2011, © Emerald Group Publishing Limited.Item Funding and Asset Allocation Policy of a Partially Funded Defined Benefit Public Pension Plan: A Case of SSNIT.(University of Ghana, 2015-06) Kuditcher, F.; Ofosu-Hene,E. D.; Gemegah, A.; University of Ghana, College of Humanities, Business School, Department of Public Administration and Health Service ManagementEmploying the VAR (1) model to predict future asset returns and generating multiple scenarios of these returns using the Monte Carlo simulation technique with 10,000 iterations we analyze the normal contribution rate and associated total pension costs for different strategic asset allocations of the SSNIT scheme and in the process we constrain the shortfall risk by integrating a conditional value at risk limit. Using MatLab software we iterate to identify the optimal normal contribution rate that will fund the scheme at a minimum volatility of annual contribution rates coupled with a strategic asset allocation policy after we had identified the deterministic contribution rate that can fund the plan. Our results indicate that the SSNIT scheme can operate at a lower normal contribution rate than the current normal contribution rate but given the rate of growth of salaries a latent plan failure going forward was identified.Item Liquidity Risk and Bank Profitability in Ghana(University of Ghana, 2013-06) Siaw, S.; Aboagye, A.Q.Q.; Gemegah, A.The study examines the determinants of liquidity risk of Ghanaian banks and how it affects their profitability. Theory on the effects of liquidity risk on bank profitability is mixed; while some studies conclude that high liquidity risk increases bank profitability through high net interest margins, others indicate that it reduces profitability due to the high cost associated with securing funding at such times. With an unbalanced data set of 22 banks over a 10 year period spanning 2002 and 2011, the random effects GLS regression based on the Hausman test is used to estimate the determinants of bank liquidity risk. The instrumental variables regression through the two stage least squares (2SLS) approach is applied to estimate the effects of liquidity risk on bank profitability due to the endogenous nature of liquidity risk as a bank profitability determinant while controlling for other variables (bank size, capital adequacy, credit risk, operational expenditure, non-interest income, industry concentration and change in GDP). The study employs the financing gap ratio (FGAPR) as the measure of liquidity risk (dependent variable) with bank size, liquid assets ratio which is further divided into risky and less risky liquid assets, non-deposit dependence, ownership type, industry concentration and change in inflation as the explanatory variables. While bank size, non-deposit dependence and change in inflation exhibit a positive and a statistically significant relationship with liquidity risk (financing gap ratio); meaning that an increase in any of these variables leads to an increase in liquidity risk, risky liquid assets, less risky liquid assets and industry concentration show a negatively significant relationship. Ownership structure has no significant relationship with the financing gap ratio (dependent variable). In order to ascertain the robustness of the results, the ratio of net loans to total deposits (NLD) as an alternative measure for liquidity risk is also applied and the results show consistency with the results obtained from the use of the financing gap ratio as a measure for liquidity risk. Again, the results from the use of instrumental variables for liquidity risk while controlling for other variables (determinants) also show a positive relationship between liquidity risk (both the financing gap ration and the ratio of net loans to total deposits) and bank profitability measured by the return on assets (ROA) and the return on equity (ROE). The study suggests that banks institute strategies that provide effective diversification in the sources of funding while exploiting deposits as a stable cheap source of funding in order to mitigate their liquidity risk exposure. Again, banks in Ghana should strengthen their treasury departments mandated to manage liquidity risk to ensure a sound process for identifying, measuring, monitoring and controlling liquidity risk in order to maximize the positive risk return relationship.Item Performance of the Okwawuman Mutual Health Insurance Scheme and Impact on the Utilization and Outcome of Maternal Care Services in Ghana(University of Ghana, 2008-09) Gyakobo, M.K.; Gemegah, A.; Enyimayew, N.; Kunfaa, E.; Adei, S.Background: The Okwawuman Mutual Health Insurance Scheme (OMHIS) had been operating since 2002. However, performance reviews have reported mainly on deficits/surpluses, coverage rates and effects on health services utilization. Objective: The study seeks to assess the performance of the scheme with respect to the performance ratios and its impact on the utilization of differential components of health services and also on maternal care outcomes including caesarean section, vacuum extraction, stillbirth and maternal mortality. Method: A cross-sectional and time series study design was used to collect both primary and secondary data through self administered questionnaires, structured interview guides and checklists. Secondary data were collected from the District Health Directorates and the District Hospitals spanning a period of eight years: Four years before and after the introduction of the OMHIS. The financial and membership records of the OMHIS were also studied. Primary data were gathered through a cross-sectional community survey, hospital exit interviews and key informant interviews. Logistic regression was employed for the test of associations. Results: The overall combined ratio of the OMHIS for the period under review was <1.0 making it a viable scheme. Health services utilization was generally increased against a declining length of stay which was influenced by complications of caesarean section and vacuum extraction (p= 0.000) rather than mode of payment. Drug availability was 95.29% and the prescription of generic (rINN) or proprietary drugs was not influenced by insurance status (P rINN = 0.777; P Proprietary = 0.213). The mean annual caesarean section rate was high, 21-22% and that for vacuum extraction was low, 0.95- 1.35%. There was a mean annual excess caesarean section of 151 cases. Caesarean section and vacuum extraction were not significantly affected by health insurance [OR C/S = 0.337, 95% CI= 0.025-4.493 (Vs. Uninsured); OR V/E = 2.970, 95% CI= 0.223- 39.627 (Vs. Uninsured)]. Insurance impacted significantly on stillbirth (OR= 3.223, 95% CI= 1.527-6.800). Among the medical determinants of stillbirth, low birth weight (<2.5kg) had the strongest impact (OR= 89.979, 95% CI= 12.002-674.564). Stillbirth was more affected by per capita ANC attendance than supervised delivery. Insurance did not impact significantly on maternal mortality [OR= 1.587, 95% CI= 0.325-7.761 (Vs. Insured)] but rather medical determinants; with complications of labour having the strongest impact (OR= 30.320, 95% CI= 9.748-94.309). Supervised delivery played a more pivotal role in influencing maternal mortality than per capita ANC attendance. Conclusion: The Okwawuman Mutual Health Insurance Scheme was viable with government subvention. The scheme caused an increased utilization of the health services but did not influence length of stay in hospital and prescription pattern. The scheme also significantly impacted on stillbirth but was not significantly associated with maternal mortality, caesarean section and vacuum extraction.Item Reputational risks in banks: A review of research themes, frameworks, methods, and future research directions(Wiley, 2022) Adeabah, D.; Andoh, C.; Asongu, S.; Gemegah, A.This study examined the research trends on reputational risk in banks using a systematic literature review and network analysis (SLRNA) approach on 35 research articles published between 2010 and 2020. It was found that only developed countries (i.e., the United States and Europe) have been actively contributing to research on reputational risks in banks, suggesting that reputational risks management of banks has not gained the global attention it deserves. Moreover, we identified five broad research themes from the thematic network analysis, namely, reputational risk of operational losses, reputational effects of media tone, performance implications of reputational risk management, management of reputational risk in banks, sustainability practices and reputational risk of banks in the project finance market. Nonetheless, there still a number of areas that require further attention. These include conceptualization of reputational risk management in banks that explore the dynamic and interdependencies in a system thinking framework, the role of corporate governance, environmental and social issues on reputational risk, how sustainability practices shape reputational risk management, the role of political connections in mitigating reputational effect of operational loss events, and how information and communication technology (ICT) mechanisms impact reputational risk management in banks.Item Reputational risks in banks: A review of research themes, frameworks, methods, and future research directions(Journal of Economic Surveys, 2023) Adeabah, D.; Andoh, C.; Asongu, S.; Gemegah, A.This study examined the research trends on reputational risk in banks using a systematic literature review and network analysis (SLRNA) approach on 35 research articles published between 2010 and 2020. It was found that only developed countries (i.e., the United States and Europe) has been actively contributing to research on reputational risks in banks, suggesting that reputational risks management of banks has not gained the global attention it deserves. Moreover, we identified five broad research themes from the thematic network analysis, namely, reputational risk of operational losses, reputa national effects of media tone, performance implications of reputational risk management, management of reputational risk in banks, sustainability practices, and reputational risk of banks in the project finance market. Nonetheless, there are still several areas that require further attention. These include the conceptualization of reputational risk management in banks that explore the dynamic and interdependencies in a system think ing framework, the role of corporate governance, environmental and social issues on reputational risk, how sustainability practices shape reputational risk management, the role of political connections in mitigating the reputational effect of operational loss events, and how information and communication technology (ICT) mechanisms impact reputational risk management in banks.Item Risk and Real Estate Investment in Ghana(University of Ghana, 2015-06) Imran, S. T.; Gemegah, A.; Gyeke- Dako; University of Ghana, College of Humanities, Business School, Department of Marketing and Consumer ManagementResidential real estate, in recent times, has attracted a lot of attention due to its strong economic performance which is mainly as a result of increasing demand for housing and additional diversification benefits offered to investors in the region; making real estate investment extremely lucrative. Nonetheless many investors have doubts about the prudence of investing in emerging markets. In particular it may be felt that the expected returns offered in the countries of the African region are not sufficient to compensate investors for the increased risks of investing in such markets. These risks can be categorized under four headings: credit risk, market risk, operational risk, and liquidity risk. So in determining the extent to which systematic risks (those looked at in this work were GDP growth rate, Interest rate, Exchange rate, Inflation rate, Unemployment rate and Number of houses sold) influence investment returns in the Ghanaian housing market, this paper adopted a Vector Autoregressive Model where each of these risks were examined in turn to see if they were sufficiently large to deter real estate investment in the region in general. From this the study it was found that shocks to the expected returns, the GDP growth rate, and the interest rate explained about 90% of the movement of the expected returns, indicating that these variables are good at transmitting the effects of shocks to the housing market. This showed that investors would have to look at these areas as target areas when adopting risk management measures in order to maximize their returns.Item Technical efficiency of the ghanaian banking industry and the effects of the entry of foreign banks.(2012) Saka, A.N.A.; Aboagye, A.Q.Q.; Gemegah, A.The effects of the entry of foreign banks and changes in bank concentration on the technical efficiency of domestic banks in Ghana over the period 2000–2008 is analyzed. Technical efficiency scores were obtained by the Data Envelopment Analysis. Then, the Tobit regression was used to analyze the impact of hypothesized explanatory variables on bank efficiency. Foreign bank share of total industry assets was used to proxy the impact of foreign banks. The findings suggest that efficiency of domestic banks has been positively affected by the entry of foreign banks and reduction in concentration. Thus, the central bank's policy of liberalizing the banking sector appears to be well placed.