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Article
Publication date: 15 May 2017

Nicholas Asare, Abdul Latif Alhassan, Michael Effah Asamoah and Matthew Ntow-Gyamfi

The purpose of this paper is to examine the relationship between intellectual capital (IC) and profitability of insurance companies in Ghana.

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Abstract

Purpose

The purpose of this paper is to examine the relationship between intellectual capital (IC) and profitability of insurance companies in Ghana.

Design/methodology/approach

Data on 36 life and non-life insurance companies from 2007 to 2011 are employed to estimate the value added intellectual coefficient of Pulic (2004, 2008). Using return on assets and underwriting profit as indicators of profitability, the ordinary least squares panel corrected standard errors of Beck and Katz (2005) is used in estimating the relationship in the presence of serial correlation and heteroskedasticity. Leverage, underwriting risk and insurers’ size are used as control variables.

Findings

Non-life insurers have high IC performance comparative to life insurers. This study finds a significant positive relationship between IC and profitability of insurers in Ghana while human capital efficiency is the main driver of insurers’ IC performance.

Practical implications

The study discusses relevance of IC for management of insurance companies in Ghana and other emerging insurance markets in Africa.

Originality/value

This appears to be the first study to examine the impact of IC on profitability of a developing insurance market in Africa.

Details

Journal of Economic and Administrative Sciences, vol. 33 no. 1
Type: Research Article
ISSN: 1026-4116

Keywords

Open Access
Article
Publication date: 7 September 2020

Nicholas Asare, Margaret Momo Laryea, Joseph Mensah Onumah and Michael Effah Asamoah

This study examines the causal relationship between intellectual capital and asset quality of banks in Ghana.

1983

Abstract

Purpose

This study examines the causal relationship between intellectual capital and asset quality of banks in Ghana.

Design/methodology/approach

Using annual data extracted from audited financial statements of 24 banks from 2006 to 2015, a ratio of non-performing loans to gross loans and advances is employed to estimate asset quality growths while the value-added intellectual coefficient by Pulic (2008, 2004) measures intellectual capital. The panel-corrected standard errors estimation technique is used to estimate panel regressions with asset quality as the dependent variable.

Findings

Asset quality of banks in Ghana is generally not affected by intellectual capital. However, when intellectual capital is divided into its components, the study indicates that there are significant positive relationships between asset quality and two components of intellectual capital. Thus, structural capital and human capital efficiencies positively affect the asset quality of banks.

Practical implications

The findings of the study implore managements of banks to increase structural and human capital investments and efficiencies to improve asset quality. Furthermore, the results have direct implications on developments in financial markets in emerging economies.

Originality/value

The study analyses the link between typical intellectual capital and asset quality of banks which is yet to be empirically examined in an emerging banking market.

Details

Asian Journal of Accounting Research, vol. 6 no. 1
Type: Research Article
ISSN: 2443-4175

Keywords

Article
Publication date: 21 September 2015

Abdul Latif Alhassan, George Kojo Addisson and Michael E. Asamoah

The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P…

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Abstract

Purpose

The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P) hypothesis for both life and non-life insurance markets in Ghana.

Design/methodology/approach

Using a panel data on 14 life and 22 non-life insurers from 2007 to 2011, the authors employed the Herfindahl Hirschman Index and concentration ratio as proxies for the S-C-P hypothesis while efficiency scores were estimated using the data envelopment analysis technique to proxy for the efficient structure (ES) hypothesis. The dependent variable, profitability was measured as return on assets while controlling for size, underwriting risk, leverage, GDP growth rate and inflation. The models were estimated using the panel corrected standard errors of Beck and Katz (1995) and random effects estimations.

Findings

The results from the empirical estimation provide ample evidence in support for ES hypothesis for both life and non-life insurance markets. While conflicting results was found for SCP hypothesis in the non-life insurance market, it was rejected in the life insurance market. The findings also point to an increasing level of competition in both life and non-life insurance industry in Ghana though they still remain concentrated with the life insurance sector having high levels of efficiency compared to the non-life sector.

Practical implications

The findings of the study will enhance the understanding of firm behaviour in the new markets created to shape regulatory and competition policies of the regulator to promote consumer welfare while ensuring a stable industry to enhance its role in economic development.

Originality/value

This is the first study to test the market power and efficient hypotheses on the insurance industry in Ghana. To the best of the author’s knowledge, this study is the first to examine the determinants of profitability in the non-life insurance market.

Details

International Journal of Emerging Markets, vol. 10 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 13 October 2021

Andrew Ebekozien, Marvelous Aigbedion, Okechukwu Saviour Dominic Duru, Oguike Hyginus Udeagwu and Ibeabuchi Lawrence Aginah

Studies have proved that wood sawmill workers are exposed to high occupational risks if not well managed. In developing countries, many wood sawmills are found in urban…

Abstract

Purpose

Studies have proved that wood sawmill workers are exposed to high occupational risks if not well managed. In developing countries, many wood sawmills are found in urban and semi-urban areas. Studies exploring how residents near these wood sawmills perceive and react to these risks is scarce in Nigeria. The application of the fourth industrial revolution (4IR) technology is possibly one of the ways to manage the likely hazards. This study aims to investigate the possible hazards associated with timber sawmills in residential areas and the role of 4IR technologies in proffering feasible solutions to mitigate them in Nigeria’s cities.

Design/methodology/approach

Data were sourced from three cities and nine sawmills across Nigeria. Face-to-face interviews were conducted with authoritative participants (residents, environmentalists, government agencies, sawmill owners, 4IR technology experts and medical experts) who have been championing the regulation and safety of timber sawmill locations within the cities (Lagos, Benin City and Owerri) via a phenomenology type of qualitative research and supplemented by secondary sources.

Findings

Findings show that timber sawmills are located across the three cities in Nigeria and may have contributed to the health and environmental challenges of the people living in the neighbourhood. The identified hazards were grouped into three sub-themes (physical, health and environmental hazards). Findings identify robots, modularisation, cyber-physical systems, the internet of things and services and human-computer interaction as the digitalised technology that can be used in sawmills to mitigate hazards for the benefit of mankind.

Research limitations/implications

The paper is limited to hazards that residents in timber sawmills locations may face in Nigeria’s cities and data collected via face-to-face 23 interviews. The paper’s referral to past publications in the findings and discussion section compensated for the small sample size.

Practical implications

As part of this paper’s implications, the emerged recommendations will strengthen collaboration with relevant stakeholders regarding control measures via the use of 4IR technologies in timber sawmills. This will stir up policymakers to develop possible policies that will promote and create the platform for the implementation of 4IR technologies in city sawmills.

Originality/value

Apart from probably being the first paper to explore the hazards of residents in timber sawmill locations and proffer solutions via the usage of the 4IR technology, this paper’s contribution emphasis the need for in-depth future studies regarding the risk perceptions of Nigeria’s residents living in timber sawmill area.

Details

Journal of Facilities Management , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-5967

Keywords

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