Business School
Permanent URI for this communityhttp://197.255.125.131:4000/handle/123456789/23016
Browse
63 results
Search Results
Item Foreign bank and banking stability in Africa: does strong and weak corporate governance systems under different regulatory regimes matter?(Journal of Financial Economic Policy, 2021) Kusi, B.A.; Agbloyor, E.K.; Abor, J.; Simplice, A.A.Purpose: The purpose of this paper is to examine the effect of foreign bank assets (FBA) and (FBP) presence is examined in terms of banking stability in the economies with strong and weak country-level corporate governance (CLCG) in Africa between 2006 and 2015. Design/methodology/approach: Using a Prais-Winsten panel data model of 86 banks in about 30 African economies: findings on how FBA and presence influence banking stability in strong and weak corporate governance economies under different regulatory regimes are reported for the first time in Africa. Findings: The findings show that foreign bank presence (FBP) and assets promote banking stability. However, the positive effect of FBA and presence is enhanced in economies with strong CLCG, whereas the positive effect of FBA and presence is weakened in economies with weak CLCG. After introducing different regulatory regimes, it is observed that the enhancing effect of FBP and assets on banking stability in the full sample and economies with strong and weak CLCG systems are deepened or improved under the loan loss provisional regulation regime. However, under the private and public sector-led financial transparency regulations, the reducing effect of FBP and assets on banking stability in economies with weak corporate governance systems is further dampened. Practical implications: These findings show that the relationship between FBP and assets is deeply shaped by corporate governance systems and regulatory regimes in Africa. Hence, policymakers must build strong corporate governance and sound regulatory regimes to enhance how foreign bank operations promote banking stabilityOriginality/value – This study presents first-time evidence on how FBA and presence influence banking stability under strong and weak governance systems while considering different regulatory regimes.Item Financial freedom, market power and bank margins in sub-Saharan Africa(Journal of Financial Regulation and Compliance, 2019-10-31) Sarpong-Kumankoma, E.; Abor, J.; Aboagye, A.Q.Q.; Amidu, M.Purpose – This paper examines the effect of financial (banking) freedom and market power on bank net interest margins (NIM). Design/methodology/approach – The study uses data from 11 sub-Saharan African countries over the period, 2006-2012, and the system generalized method of moments to assess how financial freedom affects the relationship betweenmarket power and bank NIM. Findings – The authors find that both financial freedom and market power have positive relationships with bank NIM. However, there is some indication that the impact of market power on bank margins is sensitive to the level of financial freedom prevailing in an economy. It appears that as competition intensifies, margins of banks in freer countries are likely to reduce faster than those in areas with more restrictions. Practical implications – Competition policies could be guided by the insight on how financial freedom moderates the effect of market power on bank margins. Originality/value – This study provides new empirical evidence on how the level of financial freedom affects bankmargins and the market power-bank margins relationship.Item Freedom, competition and bank profitability in Sub-Saharan Africa(Journal of Financial Regulation and Compliance, 2018-11) Sarpong-Kumankoma, E.; Abor, J.; Aboagye, A.Q.Q.; Amidu, M.Purpose This paper aims to examine the effects of financial freedom and competition on bank profitability. Design/methodology/approach The study uses system generalized method of moments and data from 139 banks across 11 Sub-Saharan African countries during the period 2006-2012. Findings The results of the study show that higher market power (less competition) is positively related to bank profitability, but operating efficiency is a more important determinant of profitability than market power. Also, both financial freedom and economic freedom show a positive impact on bank profits. The authors find evidence that banks with higher market power operating in countries with higher freedom for banking activities are more profitable than their counterparts in countries with greater restrictions on banking activities. Practical implications The results have shown that allowing banks greater freedom to operate would enhance their performance, without necessarily damaging the economy, as operating efficiency appears to be a more important reason for the observed profitability than market power. Originality/value This study provides insight on the ambiguous relationship between competition and bank profitability by considering the moderating effect of financial freedom which has not been taken into account in previous studies.Item Differences in bank profit persistence in Sub-Saharan Africa(African Journal of Economic and Management Studies, 2018-11) Sarpong-Kumankoma, E.; Abor, J.; Aboagye, A.Q.Q.; Amidu, M.Purpose The purpose of this paper is to examine differences in determinants of bank profit persistence among Sub-Saharan African (SSA) countries. Design/methodology/approach Using system generalized method of moments and data from four SSA countries during the period 2006–2012, this study considers differences in determinants of bank profit persistence across countries. Findings Efficiency in cost management is a major determinant of profit persistence in all the countries. However, concentration is found to be insignificant in all the estimations, suggesting that efficiency may be a more important determinant of profit persistence than concentration. Economic freedom associates negatively with profit persistence in Ghana, but its effect is insignificant in Tanzania, Kenya and South Africa. Lending specialization translates into less profit persistence in South Africa, but greater persistence in Tanzania. Higher levels of financial development result in lower profit persistence in Kenya and Ghana, but does not matter in Tanzania and South Africa. Practical implications The level of profit persistence gives an indication of the effectiveness of competition policies, and the differences observed in their determinants in this study suggest the need for tailor-made policy responses in the different countries. Originality/value This study improves the understanding of why some banking market competition policies have not achieved the desired outcomes in some countries. It is evident that blanket rules or wholesale importation of policies from other countries may not work in different contexts.Item The socio-economic determinants of maternal health care utilization in Ghana(International Journal of Social Economics, 2011-06) Abor, P.A.; Abekah-Nkrumah, G.; Sakyi, K.; Adjasi, C.K.D.; Abor, J.Purpose: The study aims to examine the socio-economic determinants of maternal health services utilization in Ghana. Design/methodology/approach: Probit and ordered probit models are employed in this study. Findings: The results generally indicate that most women in Ghana undertake the required visits for antenatal services and also take both doses of the tetanus toxoid vaccine as required by World Health Organization. However, the results show low levels of usage in terms of the other maternal health care services (i.e. prenatal care, delivery at a health facility, and postnatal care). There is clearly an urgent need to develop innovative strategies that will help upscale intervention especially for improvement in the use of these services by women in Ghana. The regression results reveal that utilization of maternal health services and intensity of use of antenatal services are influenced by age of mother, type of birth, education of mother, ethnicity, economic status, geographic location, residence, and religious affiliation. Obviously, this suggests that more than medical factors are responsible for the differences in the use of maternal health services by women in Ghana as well as the decision on the number of visits to undertake with respect to antenatal visits. Originality/value: The findings of this study have important implications for health policy formulation targeted at improving maternal health care service utilization. © Emerald Group Publishing Limited.Item Corporate Governance and Restructuring Activities Following Completed Bids(Corporate Governance: An International Review, 2011-01) Abor, J.; Graham, M.; Yawson, A.Manuscript Type: EmpiricalResearch Question/Issue: We examine the extent to which effective corporate governance impacts three restructuring choices following completed acquisitions - significant adjustment to workforce; sale of subsidiaries; and further acquisitions. We also investigate the relative firm performance in the post-restructuring period for the three respective options examined.Research Findings/Insights: Based on a sample of 649 US firms between the period 1991 and 2009, we find support for the assertion that corporate governance impacts layoffs and further acquisitions. We, however, find no evidence to support a measurable governance effect on divestiture likelihood. In examining the post-acquisition performance following restructuring, we find no significant difference in performance between acquirers that made further acquisitions and those that did not. There is evidence, however, suggesting that acquirers who laid off workers and those that divested assets performed significantly poorer relative to a comparable group of acquirers.Theoretical/Academic Implications: This study adds to the empirical literature on the relation between governance and restructuring choices. We provide evidence on the impact of governance on restructuring choices that has not been documented in the academic literature. An implication of this study is that performance in post-restructuring period would not necessarily be enhanced even when governance exerts positive influences on restructuring choice.Practitioner/Policy Implications: Our empirical results demonstrate the relative importance of corporate governance in organizational strategic choices. This study offers insights to stakeholders interested in enhancing governance structures to influence restructuring decisions following completed bids. © 2010 Blackwell Publishing Ltd.Item Corporate governance and firm performance: Evidence from Ghanaian listed companies(Corporate Ownership and Control, 2006-01) Kyereboah-Coleman, A.; Adjasi, C.K.D.; Abor, J.Well governed firms have been noted to have higher firm performance. The main characteristic of corporate governance identified include board size, board composition, and whether the CEO is also the board chairman. This study examines the role corporate governance structures play in firm performance amongst listed firms on the Ghana Stock Exchange. Results reveal a likely optimal board size range where mean ROA levels associated with board size 8 to 11 are higher than overall mean ROA for the sample. Significantly, firm performance is found to be better in firms with the twotier board structure. Results show further that having more outside board members is positively related to firm performance. It is clear that corporate governance structures influence firm performance in Ghana, indeed within the governance structures the two-tier board structure in Ghana is seen to be more effective in view of the higher firm level mean values obtained compared to the one-tier system.Item Determinants of dividend payout ratios in Ghana(Journal of Risk Finance, 2006-03) Amidu, M.; Abor, J.Purpose – This study seeks to examine the determinants of dividend payout ratios of listed companies in Ghana. Design/methodology/approach – The analyses are performed using data derived from the financial statements of firms listed on the Ghana Stock Exchange during a six-year period. Ordinary Least Squares model is used to estimate the regression equation. Institutional holding is used as a proxy for agency cost. Growth in sales and market-to-book value are also used as proxies for investment opportunities. Findings – The results show positive relationships between dividend payout ratios and profitability, cash flow, and tax. The results also show negative associations between dividend payout and risk, institutional holding, growth and market-to-book value. However, the significant variables in the results are profitability, cash flow, sale growth and market-to-book value. Originality/value – The main value of this study is the identification of the factors that influence the dividend payout policy decisions of listed firms in Ghana. © 2006, © Emerald Group Publishing Limited.Item The role of non-executive directors in the Ghanaian SME sector(Corporate Board: Role, Duties and Composition, 2006-01) Sarpong-Kumankoma, E.; Amidu, M.; Abor, J.This paper reports on the role of NEDs among Ghanaian SMEs. The results of this study revealed that less than half of the SMEs sampled engage the services of NED. The study also revealed that relatively larger SMEs are more likely to employ the services of NEDs. We also found that over 80% of the SMEs with NEDs were either growing or growing rapidly. NEDs' contributions were also found to be multi-various and cut across the range of SME board functions. The study showed that most SMEs acquire NEDs mainly through informal personal contacts such as family, friends of a director, business friends rather than through formal arrangements.Item Gender and the Composition of Corporate Boards: A Ghanaian Study(Indian Journal of Gender Studies, 2006-02) Amidu, M.; Abor, J.This article examines the gender composition of corporate boards of listed companies in Ghana. Results indicate that women were insignificantly represented and that younger firms had more women on their boards than firms established four decades ago. In addition, the study found that it is only after the initial listing that companies found it necessary to appoint women directors. As firms expand, they tend to employ fewer women on their corporate boards. Also, women were engaged more in the service and financial sectors than the manufacturing and construction industries. Interest-ingly, local companies appointed relatively more women as board members than their multinational counterparts. © 2006, Sage Publications India Pvt. Ltd,. All rights reserved.