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1 – 10 of 36Disraeli Asante-Darko, Bright Adu Bonsu, Samuel Famiyeh, Amoako Kwarteng and Yayra Goka
There is an existing relationship among shareholders, boards of directors and management of companies. Corporate governance practices of companies are expected to ensure…
Abstract
Purpose
There is an existing relationship among shareholders, boards of directors and management of companies. Corporate governance practices of companies are expected to ensure that this relationship maximises the wealth of shareholders. Differences exist among corporate governance of companies listed on the Ghana Stock Exchange. Companies, for purposes of liquidity, hold cash, but cash holdings also add to the cost of financing, according to working capital theories. The study, thus, sought to examine the relationship between corporate governance practices, ownership structure, cash holdings and firm value.
Design/methodology/approach
The study deployed the seemingly unrelated regression to reduce the problem of multicollinearity resulting from the strong relationship between cash reserves and some control variables.
Findings
The study found no significant relationship between board size and firm value. Similar findings were also made on the relationship between proportion of non-executive directors on the board and firm value. However, firms audited by the big four audit firms are valued higher by the capital market. Cash holdings of firms negatively affect performance, and this is statistically significant. A positive relationship arises between a firm’s cash holdings and its value as a result of debt financing, even though this is not significant.
Originality/value
The study is the first of its kind that deploys Tobin’s Q as a measure of firms’ value to reflect investors’ valuation of firms in Ghana. The study is also the first of its kind to test the interactive effect of debt financing and cash holdings on firm value in Ghana.
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Robert Opoku, Samuel Famiyeh and Amoako Kwarteng
By relying on the Theory of Planned Behavior, this paper aims to understand the relative importance of attitude, subjective norm (SN), behavioral control, self-identity…
Abstract
Purpose
By relying on the Theory of Planned Behavior, this paper aims to understand the relative importance of attitude, subjective norm (SN), behavioral control, self-identity (SI) and past behavior in the prediction of green purchase behavior among Ghanaian consumers.
Design/methodology/approach
In total, 306 graduate students were surveyed on the environmental considerations in their purchase behavior using hierarchical multiple regression analysis.
Findings
The results of the study indicate that, in general, attitude and SI are more important than SN in influencing green purchase intention in a collectivistic country, such as Ghana. Yet, most respondents were neutral in their responses to questions as to whether they are green consumers and/or if they consider themselves to be concerned about environmental issues.
Originality/value
This is the first attempt to study environmental consideration in purchase decisions in Ghana, a resource-rich, emerging and one of the strongest economies in sub-Saharan Africa.
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Samuel Famiyeh, Disraeli Asante-Darko, Amoako Kwarteng, Daniel Komla Gameti and Stephen Awuku Asah
The purpose of this study is to understand the driving forces of corporate social responsibility (CSR) initiatives in organizations and how these social initiatives…
Abstract
Purpose
The purpose of this study is to understand the driving forces of corporate social responsibility (CSR) initiatives in organizations and how these social initiatives influence organizations’ “license to operate” using data from the Ghanaian business environment.
Design/methodology/approach
This study used purposive sampling with a well-structured questionnaire as a data collection tool. Partial least squares-structural equation modeling was used to study the driving forces of CSR initiatives in organizations and how these social initiatives influence their social license.
Findings
The findings indicate that CSR initiatives are driven by the normative, mimetic, investors and community pressures. The regulative pressure has no significant effect on CSR initiatives. The authors found no difference between the services and the manufacturing sectors as far as the results are concerned using multi-grouping analysis.
Research limitations/implications
From the results, the importance of normative, mimetic, investors and community pressures as the driving forces of CSR are established. The finding indicates that CSR demands by suppliers, customers the extent to which organizations perceive their competitors have benefited from initiating CSR are benefiting, the willingness of investors to invest in companies whose CSR activities are best and the opinion on the extent to which the District Assembly and the Chief Executive in the district, the Chiefs, the Churches, the Opinion leaders have significant impact on CSR initiatives.
Practical implications
The results indicate the need for suppliers and customers to continually demand from corporations to initiate CSR activities as organizations seem to respond to these pressures, and these initiatives are also likely to be mimicked by other organizations in the same industry to enable this drive the social responsibility agenda. Investors and community members are also encouraged to invest and accept, respectively, organizations with very good CSR records to send a signal to companies who see CSR as a cost instead of performance enhancement.
Originality/value
The work illustrates and provides some insights and builds on the literature in the area of CSR from a developing country’s environment. This is also one of the few works that investigate the driving forces of CSR and social license using the institutional theory based on data from the African business environment.
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Godson A. Tetteh, Kwasi Amoako-Gyampah and Amoako Kwarteng
Several research studies on Lean Six Sigma (LSS) have been done using the survey methodology. However, the use of surveys often relies on the measurement of variables…
Abstract
Purpose
Several research studies on Lean Six Sigma (LSS) have been done using the survey methodology. However, the use of surveys often relies on the measurement of variables, which cannot be directly observed, with attendant measurement errors. The purpose of this study is to develop a methodological framework consisting of a combination of four tools for identifying and assessing measurement error during survey research.
Design/methodology/approach
This paper evaluated the viability of the framework through an experimental study on the assessment of project management success in a developing country environment. The research design combined a control group, pretest and post-test measurements with structural equation modeling that enabled the assessment of differences between honest and fake survey responses. This paper tested for common method variance (CMV) using the chi-square test for the difference between unconstrained and fully constrained models.
Findings
The CMV results confirmed that there was significant shared variance among the different measures allowing us to distinguish between trait and faking responses and ascertain how much of the observed process measurement is because of measurement system variation as opposed to variation arising from the study’s constructs.
Research limitations/implications
The study was conducted in one country, and hence, the results may not be generalizable.
Originality/value
Measurement error during survey research, if not properly addressed, can lead to incorrect conclusions that can harm theory development. It can also lead to inappropriate recommendations for practicing managers. This study provides findings from a framework developed and assessed in a LSS project environment for identifying faking responses. This paper provides a robust framework consisting of four tools that provide guidelines on distinguishing between fake and trait responses. This tool should be of great value to researchers.
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Amoako Kwarteng, Samuel Nana Yaw Simpson and Cletus Agyenim-Boateng
The study aims to examine the micro-level implications of implementing a circular economy (CE) business model on firms’ financial performance and the effect of…
Abstract
Purpose
The study aims to examine the micro-level implications of implementing a circular economy (CE) business model on firms’ financial performance and the effect of organizational culture in this context.
Design/methodology/approach
Using a survey method to obtain 617 usable questionnaires from diverse business sectors in Ghana, a largely unexplored region and relying on institutional and legitimacy theories.
Findings
The study shows that the implementation of CE policies, such as the reducing, reusing, recycling, recovery and restoration of resources used in manufacturing, distribution and consumption processes, contributes to improved financial efficiency. Furthermore, organizational culture moderates by way of strengthening the positive relationship between CE and business financial performance.
Originality/value
This study contributes to the literature on circularity and the broader discourse on ecological issues by arguing that institutional and legitimacy theories, which are both from the political economy theory, suggest that firms’ economic activities will be influenced by the political, social and institutional context. Therefore, the firm’s decision to embrace a different business model such as CE should be seen from the political environment involving rules and regulations, social dynamics both within and outside the organization and the institutional structures within which the firm operates. These mechanisms establish a business case for the implementation of CE initiatives and is guided by intent and specific goals. This motivates and encourages employees to be more involved in their duties and interactions leading to high levels of employee satisfaction, which improves productivity and profitability.
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Lexis Alexander Tetteh, Amoako Kwarteng, Emmanuel Gyamera, Lazarus Lamptey, Prince Sunu and Paul Muda
The paper aims to investigate the role of corporate governance in the relationship between small businesses financing choice decisions on the business performance.
Abstract
Purpose
The paper aims to investigate the role of corporate governance in the relationship between small businesses financing choice decisions on the business performance.
Design/methodology/approach
The paper was situated within the financial growth cycle theory and stewardship theory and survey approach was adopted for data collection. The statistical analysis was conducted by using partial least square structural equation modelling.
Findings
The results indicate that the interaction of corporate governance and financing choice decisions strengthens the performance relationship. Further, corporate governance mediates the positive relationship between financing choice decisions and performance. Thus, suggesting that corporate governance can carry the effect of the financing choice decisions to business performance.
Practical implications
The findings of our research reveal that, small businesses who follow solid corporate governance procedures should expect higher business performance. This is because financing decisions alone will not assure positive business performance unless they are tied to a broader perspective of effective corporate governance practices.
Originality/value
To the best of the authors’ knowledge, this is the first study that contributes to the small business financing choice and performance literature by combining the strengths of financial growth cycle theory and stewardship theory to explain the financing choice decisions and, in particular, the role of corporate governance in the relationship. Further, the study is unique in its nature because it presents a successful model for small businesses in emerging economies to concentrate more on the role of corporate governance in enhancing business performance.
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Samuel Famiyeh, Amoako Kwarteng and Samuel Ato Dadzie
The purpose of this paper is to examine the impact of corporate social responsibility (CSR) and firm’s reputation in terms of product and service quality, management…
Abstract
Purpose
The purpose of this paper is to examine the impact of corporate social responsibility (CSR) and firm’s reputation in terms of product and service quality, management performance and attractiveness as well as reputation on overall performance from a developing country’s environment.
Design/methodology/approach
The partial lest squares structural equation modeling was used to study the relationship between CSR and firm’s reputation as well as the overall organizational performance using a survey of informants from Ghana.
Findings
Using data from firms in Ghana, the study demonstrates that CSR initiative by firms will have a positive relationship with firm’s reputation in terms of product and service quality, management performance and attractiveness as well as overall performance. Furthermore, the study demonstrates that enhanced reputation by firms through social responsibility initiatives will lead to firms’ overall performance from the Ghanaian business environment.
Research limitations/implications
The main limitation of this work is the source of the data originating from only executives from Ghana where managers are sometimes skeptical giving out such information; this might have some influence on the results. In addition, there could be potential endogeneity and unobserved heterogeneity issues. It is therefore recommended that future studies should consider these issues to check as to whether the same results could be achieved. Specifically, results indicate that when organizations invest in CSR initiatives, they are likely to achieve product quality, improved management performance and an attractiveness as well as overall performance.
Practical implications
The research shows how CSR initiatives can enhance firm’s reputation and overall performance of a firm.
Originality/value
The work illustrates and provides some insights and builds on the literature in the area CSR and reputation from a developing country’s environment.
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Amoako Kwarteng, Cletus Agyenim-Boateng and Samuel Nana Yaw Simpson
Accountability within the framework of circular economy (CE) is unknown even though the concept of CE is increasingly gaining momentum among governments, policymakers and…
Abstract
Purpose
Accountability within the framework of circular economy (CE) is unknown even though the concept of CE is increasingly gaining momentum among governments, policymakers and academics. The purpose of this study is to investigate how accountability expresses itself in the CE.
Design/methodology/approach
This study draws on the institutional logics theory and adopted an exploratory qualitative study aimed at eliciting stakeholders’ perspectives on how accountability manifests in the context of CE. Data was collected through semi-structured interviews of cross section of Ghanaians. Respondents were recruited using the purposeful sampling method, and data saturation was reached with 35 respondents. Concurrent data collection and analysis were carried out, and emerging themes were investigated as the research progressed.
Findings
The results indicate that accountability manifestations take on a variety of forms and shapes through both formal and informal processes within the circularity space. The specific areas of accountability manifestations are through the social system embedded in the society, through the organization’s responsibility and transparency, through regular reporting to stakeholders using appropriate metrics, through agency and answerability to relevant stakeholders and through governance systems embedded within social interaction. Additionally, this study discovered that accountability manifestations would contribute to the firm’s sustainability by enhancing competitive advantage through stakeholder engagement, improving risk management and promoting creativity and innovation.
Originality/value
Given an apparent gap in the literature on circularity and accountability, as well as a call for further studies on the reflections of accountability within the CE, this study provides empirical evidence to fill these gaps.
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Amoako Kwarteng, Cletus Agyenim-Boateng and Samuel Nana Yaw Simpson
The rapid development in the circular economy phenomenon raises the prospects of potential tension between the existing accounting practices and the principles of circular…
Abstract
Purpose
The rapid development in the circular economy phenomenon raises the prospects of potential tension between the existing accounting practices and the principles of circular economy. This study, therefore, aims to investigate the barriers to adapting the current accounting practices to circular economy implementation.
Design/methodology/approach
The study uses exploratory qualitative study design, and semi-structured interviews were conducted among professional accountants in Ghana. Purposive sampling technique was used to recruit respondents, and data saturation was achieved with 45 respondents. Data collection and analysis were undertaken concurrently and emerging themes were investigated as the study progressed.
Findings
The results indicate that there are several barriers to adapting the current accounting practices to circular economy implementation. The specific barriers as revealed in the data analysis are: accounting reporting barriers, financial/economic barriers, technological barriers, managerial/behavioral barriers, organizational barriers and institutional barriers.
Originality/value
The study responded to a global call by coalition circular accounting to identify and potentially over accounting related challenges that impedes the transition to circular economy. The study’s originality stems from the fact that it explores the issue from a developing country perspective, which has received limited attention in the extant literature.
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Lexis Alexander Tetteh, Cletus Agyenim-Boateng, Amoako Kwarteng, Paul Muda and Prince Sunu
The study uses social cognitive career theory (SCCT) to explore the driving and restraining factors that students consider in selecting auditing as a career.
Abstract
Purpose
The study uses social cognitive career theory (SCCT) to explore the driving and restraining factors that students consider in selecting auditing as a career.
Design/methodology/approach
Considering the aim of this study, a qualitative research was preferred with the objective of gathering in-depth and enriched empirical data; hence, semi-structured interviews were conducted with seventy-five fourth-year undergraduate accounting students of six top-ranked universities in Ghana that offer accounting programmes.
Findings
The findings of the current study unearth the constructs of the SCCT that students' decision to consider a career in audit is driven by outcome expectations (high earnings/monetary incentives and social prestige associated with the job), as well as self-efficacy belief (possession of ethical values). Further, the study finds that self-efficacy beliefs (job stress and accounting stereotype) were the factors restraining students from considering auditing as a career. The results finally show that the students who would choose auditing as a career in future are in one way or the other, preparing for the achievement of their goals.
Research limitations/implications
The SCCT framework utilized focuses on the three main constructs: self-efficacy, outcome expectations and goals. There are a number of related factors that may influence students' career choice decisions. These may include personal characteristics and contextual influences; a change of the theoretical framework may help discover other important personal and contextual factors that this current study could not unearth.
Practical implications
The study indicates, on the contrary, that students have negative perceptions about auditing as a career option; they consider the career as stressful, tedious and monotonous. These misconceptions make it less likely for a student to pursue auditing as a career. Educators can aid students in their decision to pursue a study in accounting and become auditors by displaying and reinforcing the positive outcomes that come with the position of an auditor.
Originality/value
The findings of this study add to the existing literature by delving deeper into the self-selection factors that influence a student's desire to become an auditor. Furthermore, the current research is exceptional in that it applies the SCCT to the aim of becoming an auditor. Although other research studies have looked into factors that may influence a student's decision to pursue a profession as an accountant, these studies have mostly been quantitative, limiting the students' ability to explain why those factors encourage or dissuade them.
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