Browsing by Author "Onumah, J.M."

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The Audit expectation gap concept: examining views on auditors reports from Ghana
(Research in Accounting in Emerging Economies, 2009) Onumah, J.M.; Simpson, S.N.Y.; Babonyire, A.
Bank diversification and performance in an emerging market
(International Journal of Managerial Finance, 2019-08-07) Duho, K.C.T.; Onumah, J.M.; Owodo, R.A.
Purpose – The purpose of this paper is to investigate the impact of diversification on profitability, profit efficiency and financial stability of Ghanaian banks. Design/methodology/approach – The authors employed a panel regression technique on a data set of 32 banks from 2000 to 2015. The data envelopment analysis is used to compute profit efficiency scores with credit risk accounted for. Findings – The results suggest that income diversification decreases profit, profit efficiency and financial stability. The impact on profit and stability is U-shaped. The impact of asset diversification was found to be insignificant. High competition reduces both profitability and profit efficiency which is inconsistent with the quiet-life hypothesis of Hicks (1935), but financial stability increases with competition. High investment in tangible assets is associated with poor performance. Non-banking financial institutions that later became universal banks are not financially stable. Competition, size, age, government ownership and leverage which are controlled for and a sensitivity analysis conducted also provided relevant insights. Practical implications – The results are relevant in understanding the events in the Ghanaian banking industry in 2017–2018. Income diversification strategy is essential in determining the performance of banks. Management has to figure out the extent and scope of their diversification to benefit from the strategy. Originality/value – The authors examined diversification from the view-point of both the income statement and statement of financial position while most prior studies focused on only one aspect. The study is one of the few studies that employed the risk-adjusted profit efficiency measure in Sub-Saharan Africa.
Challenges of Implementing the Medium Term Expenditure Framework in Developing Countries: Evidence from Ghana
(2013-12-09) Onumah, J.M.; Owusu, G.M.Y.
The paper examines the challenges faced by Medium Term Expenditure Framework (MTEF) country-adopters. This stems from the limited studies ascertaining the challenges emerging from the implementation of MTEF, especially in Africa. The current study therefore adopted survey strategy to collect data from 27 out of a population of 38 Ministries, Departments and Agencies (MDAs) that have direct budgetary allocation. Results show that the state of implementation of the concept in Ghana is acceptable, but the challenges identified are widespread, limiting the concept’s achievement to some extent. Other needs by the institutions are in the form of reliable data for realistic expenditure budgeting, personnel with requisite technical abilities and skills, adequate remuneration and executive commitment to see to the success of the concept. The study provides for the Executive and policy makers, relevant data that would aid their monitoring and evaluation of the MTEF concept and which would enable them take corrective measures in reforming their implementation plans and procedures.
Corporate governance, ownership structure, cash holdings and firm value on the Ghana Stock Exchange
(The Journal of Risk Finance, 2009) Onumah, J.M.; Isshaq, Z.; Bokpin, G.A.
Determinants of adoption of computer-assisted audit tools and techniques among internal audit units in Ghana
(John Wiley & Sons, 2022) Awuah, B.; Onumah, J.M.; Duho, K.C.T.
This study investigates the determinants of adoption of computer-assisted audit tools and techniques (CAATTs) among internal audit units in Ghana. Data for the study was drawn from a sample of 75 private and state-owned enterprises through questionnaires while the partial least squares structural equation modeling was employed to analyze and test the hypotheses. The findings indicate that albeit CAATT adoption within internal audit units is fairly high, the actual usage in the areas of risk assessment, fraud detection, substantive testing, and analytical procedures are still low. Using the extended technology-organization-environment (TOE) framework, results show that CAATT behavioral intention is driven by technological readiness, organizational readiness, and environmental readiness but not personal innovativeness. In addition, CAATT behavioral intention influences CAATT adoption among the internal audit units. The findings provide valuable insights to management, heads of audit units, policymakers, and regulators on ways to improve the adoption and use of CAATT. Firms should invest more in training workshops on big data analytics, hiring more data scientists or data engineers, and equipping internal audit units with the information technology infrastructure. The paper complements prior research by applying a hierarchical component modeling technique to the extended TOE framework to investigate CAATT adoption in internal audits.
Determinants of Intellectual Capital Disclosures (ICD): Evidence from Ghana
(2013-12-09) Onumah, J.M.; Amidu, M.; Asare, N.
This paper seeks to identify factors that influence the voluntary disclosure of Intellectual Capital (IC) in corporate annual reports of listed companies in Ghana. We examine the ICD of 25 listed companies on the Ghana Stock Exchange (GSE) over a five-year period (2006-2010) through content analysis of their corporate annual reports. The study employs a panel regression analysis to establish the relationship between ICD levels of firms and firm-specific characteristics. While company size and industry sector determine the level of ICD of companies in corporate annual reports, corporate profitability and age cannot be used to predict such ICD levels of companies. The study was limited to selected listed companies on the GSE before 2006; a basically small capital market in Ghana. The implication of this study is that financial performance and the number of years of existence by a company does not influence ICD levels while the size of a company and industrial sector in which a company operate do impact ICD levels among listed companies. This is a pioneering paper on evidence of determinants of ICDs of Ghanaian corporate firms, one of the first to investigate the determinants of ICD in annual reports in West Africa.
An empirical analysis of the determinants of corporate investment decisions: Evidence from emerging market firms
(International Research Journal of Finance and Economics, 2009-11) Bokpin, G.A.; Onumah, J.M.
The purpose of this study is to analyse the impact of macroeconomic and financial market development on corporate investment decisions. The study adopts a dynamic panel data model using the Arellano and Bond (1991), the Difference GMM method. The findings revealed that the impact of macroeconomic and financial market development on corporate investment decisions was decidedly mixed depending on the measurement of the variables. Whilst stock market development and bank size are not significant in influencing corporate investment decisions, bond market development is significant in predicting corporate investment decisions. GDP per capita is significantly negative in predicting corporate investment decisions. Firm level factors such as past investment, profitability, firm size, growth opportunities available to firms and free cash flow are all significant in determining corporate investment decisions. The results of the study generally support existing literature on the impact of financial market development, macroeconomic variables and certain firm level factors on corporate investment decisions. The main value of this paper is to consider broad based approach to analysing the determinants of corporate investment decisions from emerging market context. © Euro Journals Publishing, Inc. 2009.
Ethics education and accounting programmes in Ghana: does university ownership and affiliation status matter?
(Springer International Publishing, 2015-11) Simpson, S.N.Y.; Onumah, J.M.; Oppong-Nkrumah, A.
One very important remedy proposed for the wide-spread ethical failure of accountants in recent years is ethics education. Although ethics education has been variously explored in the literature, the nature of ethics education in accounting programmes and the factors that are associated with the integration of ethics education still remain largely unexplored, particularly in the context of developing countries and at university level of education. This study, therefore, ascertains the nature of ethics education and examines how two factors, namely the type of institution and the affiliation status of the institution, affect the structure and integration of ethics education in the accounting programmes of universities in Ghana. Drawing on primarily secondary data from twenty-seven (27) out of the thirty-four (34) universities in Ghana, results show that the content and structure employed in integrating ethics into accounting programmes are associated with the type of institution and the affiliation status of institutions.
Examination of the Threats to the Auditor’s Independence in Ghana
(2013-12-09) Bedi, I.; Onumah, J.M.
In the wake of the recent corporate scandals/collapses in the US, Australia and elsewhere, attention has been drawn to the issues relating to auditors’ independence. This has affected to a large extent the degree of confidence that users of accounting information have in financial statement and has put the integrity of most auditors to question. This study therefore examines and ranks the threats to the auditor’s independence, tests for significant differences and assesses safeguards used in curbing these threats. Using snowball sampling technique, data were collected from thirty local audit firms in Ghana. The data was analysed to compute descriptive statistics such as mean and standard deviation. Inferential statistics was computed using the chi-square test. The study finds threats to auditor independence to be moderate among local firms. Also, there are no significant differences among firms based on length of existence. Continuing Professional Development programmes and personal values of accountants were found be the major source of safeguards in reducing the threats to acceptable level. The hospitality and neighbourliness imbedded in the African culture were found to be a contributory factor to the threat of familiarity. There is a need for a firm-wide policy by firms on close relationship, enforcement of ICA (Ghana) Code of Conduct and quality control reviews to check familiarity threats in Ghana.
The influence of social and political relations on corporate governance systems: The case of rural banks in Ghana
(Research in Accounting in Emerging Economies, 2009) Onumah, J.M.; Adu-Amoah, A.; Tsamenyi, M.
Knowledge and skills development of accounting raduates: the perceptions of graduates and employers in Ghana
(Accounting Education, 2010) Onumah, J.M.; Awayiga, J.; Tsamenyi, M.
The Research Journey: The other Aspect of the Academic Life as Seen Through a Doctoral Study
(2013-12-09) Onumah, J.M.
The paper examines the processes involved in doing especially a qualitative research, using the research study of this author during a doctoral research work once upon a time. The paper adds to the growing stance of qualitative-oriented researchers in accounting to defend the position of the qualitative approach in accounting research. The study adopts a case study strategy, but purely conceptual and descriptive, presenting the research procedure in the budgeting case-environment of the central government system of Ghana. The paper re-echoes the findings and recommendations of the doctoral study, which were put forward for improvement to the financial and accounting systems of the central government. It further shows the acceptability of any well researched paper, especially in accounting, devoid of any quantitatively-biased, modeling.
Women on boards, firm earnings management (EM) and performance nexus: does gender diversity moderate the EM–performance relationship?
(Emerald Publishing Limited, 2022) Mensah, E.; Onumah, J.M.
Purpose – This paper aims to shed light on an essential role that ‘‘female directors’’ on boards of companies in sub-Saharan Africa play towards corporate financial performance enhancement. The study observes how board gender diversity moderates the relationship between earnings management (EM) and financial performance of firms in sub-Saharan Africa from a dynamic perspective. Design/methodology/approach – The study’s sample comprises 105 companies listed on the respective stock markets of nine sub-Saharan African countries. The data are collected from annual reports over the period 2007–2019, a total of 1,166 firm-year observations. Panel data models are used in the analyses. Findings – The study finds that the performance effect of EM is contingent on board diversity and this finding persists even after controlling for dynamic endogeneity, simultaneity and unobserved time invariant heterogeneity inherent in the EM and performance relationship. Research limitations/implications – The findings should be understood within the context that, only available annual reports and audited financial statements that were filed with respective capital markets of the nine surveyed countries are used as source of information. Originality/value – The current study is unique, in that, it is the first panel multi-cross-country investigation within Africa to introduce gender diversity in the study of the relationship between EM and firm performance. It therefore extends the agency theory by using gender diversity as a moderating variable in the EM–firm performance nexus.