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Conference Proceedings This Community features the proceedings of conferences hosted by the KNUST or other bodies but had staff from KNUST attending and making presentationsJournal of Science and Technology (JUST) Research Articles from the members of KNUST submitted to the JUSTKumasi Center for Collaborative Research (KCCR) Lectures **Lectures** are structured presentations or talks delivered by an instructor, professor, or expert to convey knowledge on a specific subject.Research Articles
Recent Submissions
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An empirical analysis of auditors independence and audit quality in Ghana.
(KNUST, 2016-08) Aduam, William Kwame
Audit reports serve as an important source of information for various stakeholders in the world of business. Thus, a reasonable assurance that the financial statements are free from material misstatement is imperative for policy and decision making. The need to ensure reliable and high quality audit work has focused on Auditors independence since familiarity can impair their independence. The collapse of Banks and corporations in Ghana has drawn the attention of Public and Regulatory agencies to issues about Audit quality. The study examines the effect of auditor independence on audit quality of listed firms in Ghana. Annual reports of the listed firms from 2010 to 2014 are used in the analysis. The ordinary least square estimation technique is used in analyzing the relationship between Auditors independence and audit quality. The study finds auditor independence has significant implications on audit quality as higher audit fees mandates that the auditing agency provide quality work. Firms that engage highly reputable audit firms are more likely to have higher audit quality. This notwithstanding, long tenure of auditors is seen to impair auditor independence and audit quality through familiarity. The study therefore recommends that the provisions on auditor tenure are strictly adhered to given that tenure affects audit quality. Further, the study recommends that, Institute of Chartered Accountants Ghana through its quality assurance monitoring mechanism strictly ensures adherence to the provision of International Standards on Auditing regarding Auditors independence as well as the International federation of Accountants code of ethics.
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Determinants of exchange rate in Ghana: Cointegration and wavelet analysis.
(KNUST, 2016-08) Abavare, Eric K. K.
We empirically examine the determinants of the nominal exchange rate in Ghana using both time series econometric techniques and wavelet application for annual data spanning the period 1960-2014. The determinant variables under consideration included: inflation, supply of money(M1 and M2), GDP growth and trade openness. In particular, Engle-Granger method was used to test for the causal relationship, wavelets power and wavelets coherency
spectrum for direction of co-movements among the variables were applied. In addition, we determine the long and short run relationships between nominal exchange rate and its determinants using autoregressive distributive lag (ARDL) and other variants of ordinary least square cointegration techniques such as fully modified(FM), dynamics and integrated modified-OLS. As required in standard econometric analysis, unit root tests were initially performed using Augmented Dickey-Fuller, Philips-Perron and Kwiatkowski Philip Schmidt and Shin methods to assess the data generating process of the interested variables. The time series econometric analysis showed that all the variables exhibited bidirectional relationship with exchange rate with the exception of supply of money which showed unidirectional causation, from money supply to exchange rate. In the cointegration analysis, we found that all the variables showed statistically significant long term equilibrium relationship although money supply and GDP had ambiguous signs. However, inflation and trade openness coefficients were theoretically consistent with expectation. Also the lagged dependent variable and the dummy variable for exchange rate regime appears to influence exchange rate dynamics in the long run. In short, all the interested variables have positive coefficients, signifying depreciating effect on the exchange rate. The adjustment coefficient obtained was 60.78%, indicating that it takes approximately 20 months for exchange rate to fully revert to equilibrium from any deviations. The results from the wavelet application are also striking. Wavelets power spectrum clearly shows activities in the short to medium frequency band of the variables. The cross coherency test also indicated that exchange rate depreciation leads (or Granger cause) the other variables, with the exception of trade openness which drives exchange rate depreciation.
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An empirical investigation into the impact of real exchange rate misalignment on economic performance: The case of Ghana.
(KNUST, 2016-10) ACHEAMPONG, PRINCE
Misalignment of the real exchange rate (RER), whereby the actual RER deviates from its equilibrium value, has important implications on a country’s economic performance. This study, thus, investigates the impact of a misalignment in the real exchange rate on the economic performance in Ghana. Annual time series data covering the period from 1980 to 2013 were sourced from the World Bank development indicator CD-room and used in this study. Econometric procedures such as unit root testing, co-integration and the vector error correction models were followed. The single equation method, which is a model based approach for the estimation of the equilibrium exchange rate and hence the misalignment series was adopted for the study. The study reveals that the equilibrium exchange rate is determined by fundamental factors such as productivity, government expenditure, terms of trade, net foreign income and real relative interest rate. The study also shows a substantial misalignment of the real exchange rate over the study period. The real exchange rate was overvalued during the period from 1981 to 1983. The exchange rate was however undervalued over the remainder of the study period. Overall the study indicates a negative impact of the misalignment series on economic performance in Ghana both in the longrun and the short run. It is therefore encouraged, that government’s economic policy strategies be focused on strengthening the economic fundamentals such as productivity, terms of trade, better trade policies, attracting more inflows of foreign income etc. with sustained macroeconomic stability and growth being at the center.
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Compliance with IFRS (IAS 1) in Sub-Saharan Africa: Comparative study of Ghana and Kenya.
(KNUST, 2016-10) TETTEH, SIMON KOFI
Research conducted on compliance of IFRS since the 1960s used various selected IAS/IFRS. However, it has been identified that the inclusion of International Accounting Standard (IAS) 1, Presentation of Financial Statements, significantly skewed the results obtained because IAS 1 alone has the largest total disclosure requirements. This required that IAS 1 should be studied on its own merit. Studies focusing on IAS 1 was undertaken on listed firms in Ghana in 2012 and 36 listed firms in Bahrain in 2016. No such studies were conducted using a seven-year period, and no such comparative studies of compliance among African countries exists. This research seeks to fill this gab by investigating the level of compliance with IAS 1 disclosure requirements in Sub-Saharan Africa among listed Ghanaian and Kenyan firms. The study also sought to identify the firm characteristics which influence the extent of compliance with IAS 1 by listed firms in Ghana and Kenya. Listed companies sampled for this study were 31 on the Ghana Stock Exchange (GSE) and 47 on the Nairobi Stock Exchange (NSE) using annual reports for a seven-year period of 2008 to 2014. An unweighted IAS 1 disclosure index was utilized in measuring the level of compliance, whereas correlation and multiple regression analysis were employed to identify which specific firm characteristics influence the level of compliance. Findings show a level of 98% and 97% compliance with IAS 1 disclosure requirement of firms on the GSE and NSE respectively. The regression analysis shows this level of compliance with IAS 1 disclosure among Ghanaian and Kenyan firms varies significantly by the type of audit firm and multiple listing status. Type of audit firm (Big 4) is significant and positively related for Ghanaian firms but inversely related for Kenyan firms, whiles multiple
listing status is also significant but inversely related among both GSE and NSE listed firms. Despite the very high level of compliance with IAS 1, educational and regulatory support are necessary in both Ghana and Kenya regarding financial reporting with the establishment of an Authority to enforce complete compliance with accounting standards.
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Effect of ore type on the leaching and biosorption characteristics of lead from waste cupels using spent tea leaves (camellia sinensis)
(KNUST, 2019-06) Pearl Anne Narkie Korli
Waste cupel samples from two commercial gold fire assay laboratories in Ghana were sampled and characterized. The selection of the fire assay laboratories was based on the type of ore being processed. Comparative study of the effect of ore type (oxide and sulphide) on the leaching and biosorption characteristics of lead from waste cupels using spent tea leaves (Camellia sinensis) was investigated. Both laboratories use magnesia (MgO) cupels. Waste cupel samples were collected, pulverised and characterized prior to acid digestion. The mineralogical and chemical compositions were determined using X-ray Diffraction and Inductively Coupled Plasma Optical Emission Spectroscopy / Mass Spectroscopy, respectively. Leachates from the waste cupels were contacted with spent tea leaves and the biosorption efficiency and specific metal uptake determined. Results show that lead concentrations in waste cupels from oxide ore (CWO) increased as particle sizes increased whilst lead concentration from sulphide ore (CWS) decreased with increased particle sizes. The biosorption efficiency of lead was higher in CWO leachate ( > 99 %) than in CWS leachate ( < 98 %). For a given biomass concentration, CWO recorded a higher specific metal uptake as compared to CWS. The specific metal uptake in both samples were affected by the volume of leachate and lead concentration in leachate. In both samples, the adsorption isotherms fitted well in Langmuir model. The results from this study indicate that spent tea leaves can be used as an adsorbent to render waste cupels non-toxic before disposal.
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The impact of remittances on economic growth in Ghana.
(KNUST, 2016-09) ADJEI, THOMAS KWAME
This study examined the impact of remittances on economic growth for the period 1980 to 2014 using time series data. The ARDL technique is used to examine the possibility of long and short-run effects among the investigated series. The Granger causality test is conducted to investigate if there is any causal relationship between remittances and economic growth. The results suggest that, remittances had a positive and significant effect on economic growth in Ghana in the short run and not in the long run. The results of the Granger causality test showed that there is no causality between economic growth and remittances. The study therefore recommend that the government should formulate and implement sound monetary policies that aim at reducing the cost of remitting, improving and formalizing the channels of remitting as well as encouraging a Diaspora forum to bring migrants and their remitted relations together so as to be able to wellcoordinate their activities in the country.
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International transfer pricing and income shifting: evidence from companies listed on the Ghana stock exchange.
(KNUST, 2016-08) ABU-KHANIFA, MOHAMMED
International transfer pricing and income shifting has become a topical issue in many countries. As such it attracted a lot of attention from key players like academia, auditors, governments, international organizations and the media. The academia for instance, provides empirical evidence of International transfer pricing among multinationals in developed economies where the tax regime is quiet effective and efficient. Little is however known about it in developing economies where there exist inadequate and ineffective tax regimes. Motivated by this, the current study seeks to examine the possible use of international transfer pricing and income shifting by foreign multinationals in developing economies using Ghana as a case study. The methodological approach involves a comparison of total assets as a measure of capability, net profit before tax and return on assets as measures of profitability and absolute amount of dividend paid as post-performance measure for an equal sample of foreign and Ghanaian controlled entities over a seven year period. The results show significant differences between foreign and Ghanaian companies in terms of capability, profitability and dividend payment. Foreign firms therefore underperform domestic ones given their higher capability and higher earning potential thus suggesting the use of International transfer pricing by foreign companies in Ghana. Also interesting is the fact that foreign firms paid higher dividend than domestic firms notwithstanding their lower profitability thus signaling possible income shifting. Hence evidence of International transfer pricing and income shifting is confirmed and the claim that foreign firms use International transfer pricing to shift profit and reduce their tax liability is established. The study therefore recommends that existing tax laws and transfer pricing regulations should be strictly implemented. Also, Ghana Revenue Authority should equip staff of its transfer pricing unit with specialized auditing skills through capacity building programmes.