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Article
Publication date: 26 July 2021

Anthony Amoah, Rexford Kweku Asiama and Kofi Korle

This paper acknowledges the rising levels of non-performing loans (NPLs) and the consequences associated with such patterns to an emerging economy like Ghana. In theory…

Abstract

Purpose

This paper acknowledges the rising levels of non-performing loans (NPLs) and the consequences associated with such patterns to an emerging economy like Ghana. In theory, one would expect rising NPLs to have a negative impact on an economy, especially regarding credit creation and private sector growth. This research, consistent with empirical literature, constructs a measure of financial market development to investigate its effect on Ghana's NPLs.

Design/methodology/approach

The fully modified ordinary least squares (FMOLS) econometric technique is used as a way of addressing common time series identification issues such as endogeneity and serial correlation.

Findings

The study finds that the growth of the financial market has a negative and statistically significant relationship with NPLs in Ghana. Therefore, building a stable financial sector is key to addressing Ghana’s rising rates of NPLs.

Practical implications

Applying the breaks to Ghana's NPLs would involve deepening credit and improving efficiency through good governance. The study suggests that such a mechanism would increase financial sector performance and reduce the growth risks arising from the industry.

Originality/value

The study analyzes the influence of financial market development on the quarterly growth of NPLs in Ghana. Most studies only focus on annual growth of NPLs.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 1 January 2021

Anthony Amoah and Benjamin Amoah

Lockdowns are generally characterised by financial depletion, loneliness, stress, depression, loss of jobs and businesses, among others. The effect of the recent lockdown…

Abstract

Purpose

Lockdowns are generally characterised by financial depletion, loneliness, stress, depression, loss of jobs and businesses, among others. The effect of the recent lockdown in Ghana as a result of COVID-19 pandemic has not been different. The primary question this study seeks to answer is: are lockdowns only characterised by negativity, or could there be a positive side that has not yet been harnessed?

Design/methodology/approach

To answer this question, the authors rely on a dataset of 879 observations obtained through an online survey administered from 25 April to 3 May 2020. Using a regression approach, the authors applied an ordered probit econometric technique with its associated predicted margins.

Findings

The authors show evidence that in the midst of the negativity surrounding the lockdown, social connectedness is evident, especially in relatively less busy cities. The authors recommend that instead of losing oneself through social isolation and loneliness during lockdowns, people should use lockdowns as an opportunity to build and exhibit social capital and harness the opportunities associated with it. The authors also recommend that during lockdowns, channels of social connectedness should be made easily accessible and cheaper through a well-targeted government subsidy programme for the poor.

Originality/value

To the best of the authors' knowledge, this is a novel study that provides the first empirical evidence on the relationship between coronavirus disease 2019 (COVID-19) pandemic lockdown and social connectedness.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Content available
Article
Publication date: 6 November 2020

Anthony Amoah and Kofi Korle

This study seeks to provide a robust piece of evidence of forest depletion in Ghana and its associated driver intensities to inform national policy decisions towards…

Abstract

Purpose

This study seeks to provide a robust piece of evidence of forest depletion in Ghana and its associated driver intensities to inform national policy decisions towards achieving Sustainable Development Goal (SDG) 15 and beyond.

Design/methodology/approach

Using a representative sample size of 733 households, which was obtained with the aid of a structured questionnaire, a descriptive analysis is used to show the evidence of forest depletion. For robustness purposes, the geographic information system (GIS) is used to provide a piece of remote sensing evidence to substantiate the claim. In addition, an ordered probit regression model is estimated given the ranked nature of the responses to determine the drivers of forest depletion.

Findings

The results provide evidence that the urban forests in the Greater Accra Region (GAR) of Ghana have been depleted. Overall, 44% argued that the depletion of the forests is high, 30% indicated that the depletion is moderate, while 26% indicated that the depletion is low. Consistent with the literature, the ordered probit regression results show that human behaviour, climate change and institutional failure are the driver intensities of forest depletion in the Region. Besides, the authors find an increasing order effect for all three drivers. Using a descriptive analysis, majority of the respondents posited that human behaviour is the main driver intensity, followed by climate change and then institutional failure. This study recommends the need for education and advocacy, community participation, law enforcement, resource mobilization, modern adaptation strategies and internalization of externalities as a way of controlling the drivers of forest depletion.

Originality/value

The study uses remote sensing techniques to provide empirical evidence of protected forest depletion in the GAR, Ghana. In addition, an ordered probit regression is used to identify the driver intensities that explain the depleted protected forests in the region.

Details

Forestry Economics Review, vol. 2 no. 1
Type: Research Article
ISSN: 2631-3030

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Article
Publication date: 30 December 2020

Joseph Emmanuel Tetteh and Anthony Amoah

In the wake of climate change and its associated impact on firms' performance, this paper attempts to provide a piece of empirical evidence in support of the effect of…

Abstract

Purpose

In the wake of climate change and its associated impact on firms' performance, this paper attempts to provide a piece of empirical evidence in support of the effect of weather conditions on the stock market performance.

Design/methodology/approach

Monthly time-series dataset and the fully modified ordinary least square (FMOLS) semi-parametric econometric technique are used to establish the effect of weather variables on stock market return.

Findings

This study finds that temperature and wind speed have a negative and statistically significant relationship with stock market performance. Likewise, humidity exhibits a negative relationship with stock market performance, albeit insignificant. The relevant stock market and macroeconomic control variables are statistically significant in addition to exhibiting their expected signs. The findings lend support to advocates of behavioural factors inclusion in asset pricing and decision-making.

Practical implications

For policy purposes, the authors recommend that traders, investors and stock exchange managers must take into consideration different weather conditions as they influence investors' behaviour, investment decisions, and consequently, the stock market performance.

Originality/value

To the best of the authors’ knowledge, this study provides the first empirical evidence of the nexus between disaggregated weather measures and stock market performance in Ghana. This study uses monthly data (which are very rare in the literature, especially for developing country studies) to provide empirical evidence that weather influences stock market performance.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 25 August 2020

Anthony Amoah, Kofi Korle and Rexford Kweku Asiama

This paper seeks to examine the motivating factors that propel people to use mobile money in the Greater Accra Region (GAR) of Ghana. The authors posit that the behaviour…

Abstract

Purpose

This paper seeks to examine the motivating factors that propel people to use mobile money in the Greater Accra Region (GAR) of Ghana. The authors posit that the behaviour of a person, in terms of the choice and means of transaction, cannot be explained solely by utility-maximizing assumptions or rationality. Thus, other socio-cultural and psychological factors are crucial in determining whether a person will use mobile money.

Design/methodology/approach

This study uses a cross-sectional design to obtain primary data on 733 households from the GAR of Ghana to determine the drivers of mobile money use. Given the binary nature of the dependent variable, a logit model and its marginal effects are estimated. Furthermore, parametric and non-parametric statistical tests are used to examine gender effect and mobile money use.

Findings

The study finds that technology savvy cohorts (youthful age cohorts), available services such as phone credit recharge, education and income are among the key determinants of mobile money use in Ghana. Furthermore, parametric and non-parametric tests of mobile money use on gender show a statistically significant difference in gender use of mobile money, albeit, marginal. The findings imply that consistent use of mobile money to access social and economic services can go a long way in promoting financial inclusion, financial empowerment and general wellbeing of people.

Originality/value

Households in developing countries especially Ghana have rapidly embraced mobile money technology. However, what determines the household level of adoption, to the best of our knowledge, is unknown and yet to be tested. This study bridges that gap in the empirical literature as well as contributes to policy decisions.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2020-0271

Details

International Journal of Social Economics, vol. 47 no. 10
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 2 June 2020

Kofi Korle, Anthony Amoah, George Hughes, Paragon Pomeyie and Godson Ahiabor

The purpose of the study is to investigate the role of disaggregated economic freedom measures in the foreign direct investment (FDI) and human development nexus.

Abstract

Purpose

The purpose of the study is to investigate the role of disaggregated economic freedom measures in the foreign direct investment (FDI) and human development nexus.

Design/methodology/approach

The study uses a panel data of 32 selected African countries from 1996 to 2017. A dynamic ordinary least squares (DOLS) with fixed effects and instrumental variable (IV) econometric techniques was used to address issues of endogeneity and serial correlation commonly associated with panel time series data.

Findings

The Results indicate that FDI without accounting for absorptive factors has a positive but insignificant effect on human development for the selected African countries. However, FDI has a positive and significant effect on human development when interacted with measures of economic freedom such as investment freedom, business freedom and financial freedom. In contrast, yet plausible, FDI has a negative influence when interacted with property rights, trade freedom, government integrity and tax burden.

Practical implications

The study posits that to attract FDI into Africa with the purpose of improving human development, relevant absorptive capacities such as business, investment and financial freedom environment are critical. However, excessive capital flight and government interference through taxation and abuse of property rights should be controlled if the continent seeks to promote human development through FDI.

Originality/value

The novelty and originality of the study, are evident in the use of disaggregated measures of economic freedom as comprehensive absorptive capacities to examine how they complement FDI to impact on human development in Africa.

Details

Journal of Economic and Administrative Sciences, vol. 36 no. 4
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 14 November 2019

Edmond Hagan and Anthony Amoah

African countries are generally fragile. This and other related characteristics affect the potential for growth and development. The purpose of this paper is to…

Abstract

Purpose

African countries are generally fragile. This and other related characteristics affect the potential for growth and development. The purpose of this paper is to investigate whether the effect of FDI on economic growth is contingent on a financial system that accounts for financial market fragility. An important point of departure from earlier studies is the adoption of a new measure of financial market fragility.

Design/methodology/approach

Given the uniqueness of the data set, the study uses a panel data and estimates an econometric model using an instrumental variable approach. For robustness purposes, a pooled ordinary least square is also estimated.

Findings

The study provides evidence that if the financial market is fragile as in the case of Africa, FDI inflows may have a marginally significant positive impact on economic growth. The findings suggest that fragility in the financial market is a key absorptive capacity and cannot be trivialised when exploring FDI–growth nexus in Africa.

Research limitations/implications

The uniqueness of the data set limited the time period of the study. Nonetheless, the findings are still crucial to policy makers in Africa and other developing countries with similar characteristics.

Originality/value

To the best of the authors’ knowledge, this is the first study in Africa to investigate the FDI–growth nexus which accounts for financial market fragility.

Details

African Journal of Economic and Management Studies, vol. 11 no. 1
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 12 December 2018

Rexford Kweku Asiama and Anthony Amoah

The sharp rise in non-performing loans (NPLs) with its associated effect on financial institutions in Ghana has become very alarming. This has led to the collapse of…

Abstract

Purpose

The sharp rise in non-performing loans (NPLs) with its associated effect on financial institutions in Ghana has become very alarming. This has led to the collapse of distressed institutions and associated repercussions such as loss of private savings, investments, businesses and livelihoods. The purpose of this paper is to test the hypothesis that the monetary policy rate can be used to influence NPLs in Ghana.

Design/methodology/approach

Using quarterly data spanning from 2000 to 2016, the authors used the autoregressive distributed lag econometric approach to estimate the effect of monetary policy on the percentage growth of NPLs in Ghana. The results are presented for both short-run and long-run periods.

Findings

In the short run, the authors find evidence of no statistically significant effect of monetary policy on the percentage growth of NPLs. However, in the long run, the authors find a statistically significant effect of monetary policy on the percentage growth of NPLs.

Practical implications

The authors recommend that policymakers should focus on building a strong financial environment, so that monetary policy can be used to influence the commercial bank’s interest rate. In effect, this will help reduce the growth of NPLs, reduce risk and attract competitors into the financial market, increase asset base, increase credit to support viable ventures and subsequently boost economic growth in Ghana.

Originality/value

The paper shows its value by using quarterly data whereas most literature have considered annual data. Also, the paper includes a policy variable measured by the Monetary Policy Rate (MPR) as the key variable of interest which is normally not the case with most studies.

Details

African Journal of Economic and Management Studies, vol. 10 no. 2
Type: Research Article
ISSN: 2040-0705

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Book part
Publication date: 18 July 2017

Nana Y. Amoah, Anthony Anderson, Isaac Bonaparte and Alex P. Tang

This study examines the relation between internal control material weakness (ICMW) under Section 404 of the Sarbanes-Oxley Act (SOX) and real earnings management. Our…

Abstract

This study examines the relation between internal control material weakness (ICMW) under Section 404 of the Sarbanes-Oxley Act (SOX) and real earnings management. Our measures of real earnings management are abnormal cash flow from operations (ABCFOs), abnormal discretionary expenses (ABDISEXP), and abnormal production cost (ABPROD). We use a sample of 1,824 manufacturing firms over the period 2004–2011 to run regressions of ABCFO, ABDISEXP, and ABPROD on ICMW and other independent variables. We find that ICMW is negatively associated with ABCFOs. Another result that emerges from this study is a positive relation between ICMW and ABPROD. Our results imply that manufacturing firms with materially weak internal controls predominantly use overproduction and excessive price discounts to manage operational activities to achieve earnings targets. As SOX Section 404 is designed to reduce the instances of firms having ICMW, our finding that ICMW firms engage in real earnings management suggests that the use of real earnings management could be reduced as SOX Section 404 succeeds in reducing ICMW.

Details

Parables, Myths and Risks
Type: Book
ISBN: 978-1-78714-534-4

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Article
Publication date: 14 August 2017

Nana Y. Amoah, Anthony Anderson, Isaac Bonaparte and Susan Muzorewa

This study aims to examine the use of real activities manipulation by firms implicated in the stock option backdating scandal.

Abstract

Purpose

This study aims to examine the use of real activities manipulation by firms implicated in the stock option backdating scandal.

Design/methodology/approach

The real activity manipulation measures are as follows: abnormal R&D expense, abnormal SG&A expense, abnormal production cost and abnormal cash flow from operations. Using a sample of firms alleged to have backdated options during the period 1998-2006 and non-backdating one-on-one matched firms, a separate regression is run for each of the real activity manipulation measures (dependent variables) on backdating and other variables.

Findings

The authors report unusually low R&D and unusually low SG&A expenses among the backdating firms. They also find evidence of unusually high production costs among backdating firms compared to the matched firms.

Research limitations/implications

The findings imply that backdating firms are more aggressive in the use of real activities to manipulate earnings and the use of real activities appears to be opportunistic.

Originality/value

The study contributes to the literature by providing evidence of the use of real activities manipulation by firms under investigation for fraud. The authors also add to the debate on whether the use of stock options as part of compensation aligns the interest of management with the interest of shareholders.

Details

Review of Accounting and Finance, vol. 16 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

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