College of Humanities & Social Sciences

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Now showing 1 - 5 of 228
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    Testing the pecking order theory of banks listed on the ghana stock exchange
    (KNUST, 2021) SEY EUNICE
    The research examined the pecking order theory practice of banks listed on the Ghana Stock Exchange. The link between leverage and firm specific characteristics such as profitability, loan quality, growth, age and size of firms was ascertained. The research used quantitative approaches and employed the descriptive designs. Secondary data from the annual financial statements of banks listed on the Ghana Stock Exchange from the year 2010 to 2019 were used for the studies. As at the end of the year 2019, eight (8) banks were listed consisting of Ecobank Ghana Ltd, Societe Generale, Standard Chartered Bank, Cal bank, Agricultural Development Bank, Access Bank, Republic Bank, and Ghana Commercial Bank. The data was analyzed using version 25 of Statistical Package for Service Solution. The Augmented Dickey Fuller, Tolerance, Durbin Watson and Variance Inflation Factor tests were used as estimation techniques to ensure accuracy of data. Panel data regression method was used to establish the presence of the pecking order theory. The study found that leverage was negatively related to profitability of listed banks but was statistically insignificant. Leverage was also negatively related to loan quality but statistically insignificant. Leverage showed positive correlation to the size and the age of the firm and was statistically significant, while leverage was positively correlated to growth but insignificant. The study recommends that management of the banks listed put in the necessary measures such as ensuring quality loans and using debt as financing strategies to enhance an increase in the growth levels of firms
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    Determinants of cash holdings of firms listed on the Ghana stock exchange
    Cash is the lifeblood of every business. This study analyzed the determinants of cash holdings of Ghana-listed companies. The study adopted an explanatory research design. A sample of 21 companies was analyzed from 2010 to 2018. Quantitative data from the financial statements and macro-economic data was obtained. The independent variables were firm size, growth, dividend payout, profitability, liquid assets substitutes, and leverage. The dependent variable was cash holdings, and the control variables were inflation, gross domestic products, and exchange rates. The data were sorted, cleaned, and coded, and then entered in version 15 of Stata. It was observed that profitability and size had a significant positive effect on the cash holdings of non-financial firms. It was also seen that liquidity and leverage had a significant negative effect on the cash holdings of non-financial firms. It was observed in the financial sector that size and growth had a significant positive effect on cash holdings, while dividend payout had a significant negative effect on cash holdings. It is recommended that companies balance cash holding with cash holding expenses for optimal benefit
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    The effect of corporate governance on the financial performance of listed financial institutions in Ghana
    The aim of this study is to examine the effect of corporate governance on the performance of listed financial institutions in Ghana. Using a panel data regression analysis for listed banks between 2008-2018 to examine whether corporate governance mechanisms affect banks financial performance. The key findings reveal negative and significant relationship between board size and banks performance, negative and significant relationship between board remuneration and banks performance, negative and significant relationship between board gender diversity and banks performance and positive and significant relationship between board independence and banks performance. The study recommends that since board size have been noted to negatively correlate to financial performance using ROA and ROE, shareholders of listed financial institutions are advised to keep and maintain reasonable number of people as directors in steering the affairs of the company on their behalf.
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    Examining the moderating role of corporate governance mechanisms on the relationship between corporate social responsibility and firm performances in ghana
    The main objective of the study is to examine the moderating effect of corporate governance on the relationship between corporate social responsibility and firm performance. The study uses an explanatory research design and a quantitative research approach. The sample for this study includes sixteen (16) firms who have their data readily available and accessible for the purpose of this research and the data period spans from 2014 to 2019. The sampling technique used for this study is the purposive sampling technique. Based on the findings of the study, it is concluded that corporate social responsibility is harmful to firms in Ghana and that corporate governance mechanisms have no significant effect on the performance of these firms. However, the adverse effect of corporate social responsibility on performance can be reduced by interacting corporate social responsibility and corporate governance mechanisms such as board size and board composition. To the extent that corporate social responsibility hurts the financial performance, it is recommended that firms should limit their spending on corporate social responsibility as this is found to have adverse effects on their performances. Instead, firms should strive to identify effective avenues where their funds could be invested in order to aid in improving their revenue flows as corporate governance activities depletes their earnings. When board composition as a moderator changes the negative effect of CSR to a positive one, it is recommended that, firms must ensure that they improve their board composition by ensuring that there are more independent directors than executive directors as recommended by the corporate governance code. This would lead to better allocation of funds that the company intends to use for CSR activities and hence lead to improving the firm’s performance.
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    Green Innovation and Environmental Performance: The Moderating Role of Innovation Orientation
    (KNUST, 2023) Tawiah Stella Mabel
    Adopting green practices is a critical factor for today's businesses. However, green innovation, like all forms of innovation, bears inherent risk. There are instances where these efforts fail to achieve the desired environmental performance due to various reasons such as high cost, lack of acceptance, technology failures, or unforeseen adverse environmental impacts. Such risks may deter firms from investing in green innovations or limit their effectiveness in enhancing environmental performance. This study thus investigates the moderating role of innovation orientation in the relationship between green innovation and environmental performance. Grounded in the contingency natural resource based view theory, the research focuses on manufacturing firms in the Greater Accra region of Ghana. A quantitative research approach was employed, utilizing a sample of 200 firms and collecting data through a survey. The results show that both green innovation and innovation orientation positively impact environmental iv performance. However, the interaction effect between green innovation and innovation orientation was not significant. The research contributes to the theoretical understanding of green innovation and innovation orientation in enhancing environmental performance and offers practical implications for firms seeking to improve their environmental performance. This study therefore recommends that the adoption of green practices, fostering a culture of innovation, and integrating innovation and sustainability strategies should be prioritized. Despite the limitations of focusing on the Greater Accra region and relying on self-reported data, the study provides valuable insights into the relationship between green innovation, innovation orientation, and environmental performance, with the potential for future research to expand the scope and explore the mediating role of innovation orientation.