Determinants of financial performance of listed manufacturing firms in ghana
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Date
2023
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KNUST
Abstract
This study examined the determinants of financial performance of manufacturing firms in Ghana. The theoretical underpinnings of the research was the pecking order theory, agency theory and the theory of comparative advantage. The research design for this study is quantitative. The study sampled 12 manufacturing firms on the Ghana stock exchange covering the period 2010 - 2021. The data was analysed using fixed effect regression. The study found that an increase in cash holdings is associated with an increase in the performance of manufacturing firms. The study revealed that an increase in the cost of debt leads to a decrease in the performance. The study highlighted that an increase in openness to trade leads to a decrease in the performance of manufacturing firms. The study does not find a significant effect of exchange rate volatility on the performance of manufacturing firms. Manufacturing firms should continuously monitor market trends, industry dynamics, and macroeconomic factors that may influence their performance. This allows firms to proactively identify opportunities and challenges, adjust their strategies, and make informed decisions to stay competitive. Regular performance evaluations, benchmarking against industry peers, and staying informed about regulatory changes can help firms adapt and thrive in a dynamic business environment.
Description
A thesis submitted to the institute of distance learning in partial fulfillment of the requirement for the award of a master of science degree in accounting and finance