Browsing by Author "Ntow-Gyamfi, M."
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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 Financial Development, Institutional Quality and Inclusive Growth in Africa(Global Business Review, 2022) Ntow-Gyamfi, M.; Bokpin, G.A.; Aboagye, A.Q.Q.; Ackah, C.G.We investigate the relationship between Financial Development (FD) and Inclusive Growth (IG) unlike extant literature, whose concentration has been on economic growth, which we refer to as wholesale growth. While we examine the effect of FD on IG, we investigate the moderating role played by institutions and the regulatory ambience in conveying the strides of FD towards the poor. We measure IG through a social mobility function approach and also construct an IG Index using Asian Development Bank’s framework of IG for robustness. We employ a 27-year-old panel data collected from across 48 African countries in our dynamic estimations of the FD-IG nexus. We find a non-linear relationship between finance and IG. Our results show that for FD to lead to IG, there is a need to have an effective institutional setup that regulates financial market participants to be inclusive in their operations. With weak institutions, FD’s effect on IG is negative. Our study does not just investigate how FD explains how much money there is overall, but how the money is shared across societies as well. This study is the first to examine the finance-growth nexus from the perspective of inclusivity. Practical policy implications are also discussed.Item Natural resources, financial development and institutional quality in Africa: Is there a resource curse?(Resources Policy, 2018-12) Dwumfour, R.A.; Ntow-Gyamfi, M.We examine the resource curse hypothesis in the relationship between natural resources, financial development (FD) and institutional quality of 38 African countries from 2000 to 2012. We use the Arellano-Bond Generalized Method of Moments (GMM) estimator in our estimations. Our findings reveal that 32% of African countries are dependent on resource rents ranging from a low of 12.5% (in Zambia) to 52.6% (in Angola) share of GDP. We further find that in Africa, the impact of natural resource rents (Rents) on financial development is ambiguous. It largely depends on the FD indicator used. The resource curse is seen when a Z-score is used as FD indicator. Particularly, we find that the resource curse in FD is seen in Sub-Saharan Africa, Low Income Countries and Middle Income countries but not in the North African region. The impact of Rents on credit however is positive in all regions. In these relationships the quality of institutions can reduce the negative impact of Rents on FD. Our findings are robust to the use of different indicators of FD and institutional quality.