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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/8512

Title: DETERMINANTS OF INVESTMENT DECISIONS OF SELECTED LISTED FIRMS IN GHANA
Authors: EDUSEI-MENSAH, WILLIAM
Issue Date: 6-Apr-2016
Abstract: Businesses revolve around the factor of investing. Firms and humans have ridden from caves to skyscrapers on the back of investment. This study identifies the determinants of investment decisions of firms listed on the Ghana Stock Exchange during 2006 to 2013. The data for the study were extracted from annual reports and accounts of 9 companies over the aforementioned period. These data were subjected to regression analysis, using STATA software. Investment decision was measured by changes in non-current assets. The independent variables considered were firm size, cash-flow, profit, indebtedness, prior period’s fixed assets, interest rates and exchange rates. At first‚ the descriptive statistics for entire variables were ascertained and then correlation matrix was calculated to identify the preliminary relationship among all the variables‚ followed by regression analysis on panel data to examine the significance and magnitude through fixed effect model. Theoretical assertions were justified that the level of cash, existing resources with respect to fixed assets and exchange rates significantly affect the investment decisions of listed Ghanaian firms. This study also revealed that firm size, debt, profit and interest rates have no significant relationship with investments. It is recommended that firms support governments efforts aimed at strengthening the local currency and also ensure that they have a robust cash flow.
Description: A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (Finance Option)
URI: http://hdl.handle.net/123456789/8512
Appears in Collections:College of Arts and Social Sciences

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