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The purpose of this paper is to examine the determinants and convergence of government effectiveness in African and Asian countries.

The study utilizes data from 100 countries in Africa and Asia from 2002 to 2018. The panel-corrected standard error regression is used for the regression analysis, while both beta-convergence and sigma-convergence among the countries are tested.

Both beta-convergence and sigma-convergence exist among African and Asian countries. Asia performs better than Africa across all indicators except for press freedom, and voice and accountability. Corruption perception index, government size, voice and accountability, regulatory quality and economic wealth have a significant positive effect on government effectiveness. Press freedom negatively impacts on government effectiveness, suggesting that freedom is necessary but not sufficient if there are political actors whose actions undermine freedom. Similarly, the political constraint index, as reflected by checks and balances are necessary but not sufficient to enhance government effectiveness, especially in Asia.

The results reveal that for press freedom and political checks and balances to enhance government effectiveness, there is a need for a different and holistic approach. The results are relevant for policymakers, public sector practitioners and academics.

This study utilizes a new dataset and is premier in exploring the convergence of government effectiveness among African and Asian countries.

The purpose of this paper is to examine the impact of intellectual capital and its components on bank diversification choice.

Both asset and income diversification are computed and an unbalanced panel data set of 32 banks covering the period 2000–2015 have been used. The panel corrected standard error regression has been used to account for serial correlation and heteroscedasticity.

The study found that intellectual capital determines the choice of diversifying. Precisely, intellectual capital motivates asset diversity but it dissuades income diversification. Human capital and structural capital are major components that determine asset diversity decisions. Income diversification decision, in this case to choose a focus strategy, is determined by human capital. This gives credence for the human capital theory in Ghana. Competition encourages a focus strategy. Bank size and leverage enhances income diversification while stock exchange listing and government ownership fosters the focus strategy.

Diversification strategy, knowledge base of staff, corporate governance and internal control have been considered as factors leading to the collapse of some Ghanaian banks in 2017–2018. The study provides relevant insights for regulators, decision support units and corporate boards. Intellectual capital and value added metrics should be used for modelling and decision making as they have value relevance.

This is a premier study that has examined the nexus between diversification strategy and intellectual capital in banks.