Emmanuel Tetteh Jumpah, Yaw Osei-Asare and Emmanuel Kodjo Tetteh
Users of smallholder farmer microfinance are able to make enough returns to repay credits advanced to them. However, they are in dire need of financial capital such that they are…
Abstract
Purpose
Users of smallholder farmer microfinance are able to make enough returns to repay credits advanced to them. However, they are in dire need of financial capital such that they are inconsiderate of farmer- and credit-specific characteristics when participating in a microfinance programme. This study analyses perceptions of stakeholders regarding select farmer and credit characteristics within the microfinance industry. The study identifies and analyses the factors that influence participation in a microfinance programme by farmers using the logistic regression model. The purpose of this paper is to widen the knowledge base of rural agricultural finance, including factors that influence participation in microfinance intervention(s) thereof.
Design/methodology/approach
A total of 104 participants and 120 non-participant farmers in microfinance programmes were interviewed using a semi-structured questionnaire by applying the multistage sampling technique. The paper applied the logistic regression model in which farmer- and credit-specific characteristics were used to estimate the probabilities of participation.
Findings
The logistic regression results showed that distance, interest rate, experience, membership of farmer-based organisation, number of dependants, household, gender and age were statistically significant farmer- and credit-specific characteristics that influence participation in microfinance programmes. Interest rate and distance exact negative significance influence on participation, whereas membership of farmer-based organisations, experience, gender, household head and age influence participation positively. Reduction in the interest rate and expansion of microfinance to very remote areas rather than locations in urban areas are crucial in terms of improving participation.
Research limitations/implications
The paper used data from only farmers so there is a limit to which the results can be generalised for all microfinance users. It may be relevant to undertake a study that considers non-farm enterprises.
Practical implications
This paper brings to light the need to develop well-structured microfinance facilities that meet the specific needs of the rural poor in transitioning economies while taking into consideration critical factors affecting participation before the establishment of such programmes.
Originality/value
This paper provides empirical evidence to show that farmer- and credit-specific characteristics are essential to ensure participation and success of microfinance programmes thereof.
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Christopher Boachie and Joseph Emmanuel Tetteh
Drawing on risk mitigation theory, this study aims to examine the link between corporate social responsibility (CSR) disclosure and the cost of debt financing (CDF). In…
Abstract
Purpose
Drawing on risk mitigation theory, this study aims to examine the link between corporate social responsibility (CSR) disclosure and the cost of debt financing (CDF). In particular, this paper seeks to determine whether firms with higher CSR disclosure scores have a lower CDF.
Design/methodology/approach
This paper uses a panel data analysis of non-financial Ghanaian firms listed on the Ghana Stock Exchange from 2006 to 2019. The CSR index constructed from firms’ annual reports and sustainability reports is used as a proxy for the extent of CSR information disclosures by Ghanaian companies.
Findings
The empirical results demonstrate that CDF is positively related to CSR disclosure scores. Besides, the results show that the levels of long-term debt increase with CSR disclosure in a highly risky industry. However, the finding does not meet the lenders’ expectations in terms of CSR attracting favourable debt financing sources.
Research limitations/implications
The research is based only on the quantity of the CSR information disclosed by Ghanaian companies and does not account for the quality of the CSR disclosures. The empirical model omits some control variables such as the age of the firm and external business conditions. The results should not be generalized, as the sample was based on three listed industries in Ghana for 2006–2019.
Originality/value
This study extends the scope of previous studies by examining the importance of CSR disclosures in financing decisions. More precisely, it focuses on the relatively little explored relationship between the extent of CSR disclosures and access to debt financing. Moreover, this study focuses on the rather interesting empirical setting of Ghana, which is characterized by its low level of CSR awareness. Achieving a better understanding of the effects of CSR information is useful for corporate managers desiring to meet lenders’ expectations and attract debt financing sources.
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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 weather…
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.
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Emmanuel Tetteh Teye, Beatrice Ayerakwa Abosi, Alexander Narh Tetteh, Seth Yeboah Ntim, Abraham Teye, Offeibea Love Aseidua-Ayeh and Sophia Agyeiwaa Dubi
Previous research has considered human motivation as a determinant of inquisitiveness, learning and innovation. However, how student’s motivation affects both…
Abstract
Purpose
Previous research has considered human motivation as a determinant of inquisitiveness, learning and innovation. However, how student’s motivation affects both exploitative/exploratory research outcomes has not yet been sufficiently addressed. The purpose of this paper is to examine self-determination theory (SDT) as a conceptual tool to understand post-graduate student’s academic motivation and how it affects two types of ambidextrous outcomes (exploitative and exploratory), and thus posit relational capital as an important mediator in the motivation–innovation process.
Design/methodology/approach
The authors draw conclusions using 331 valid post-graduate foreign scholars data collected via online survey in three Chinese Universities and conduct data analysis using the structural equation modeling technique (AMOS).
Findings
Results indicate that: academic motivation and perceived collaboration capability both has a significant effect on exploitation behavior; there was no significant relationship between academic motivation and tendency to collaborate with actors within their networks; collaboration capability and exploitation behavior mediate the relationship between academic motivation and exploration behavior; and further a complementary link was found to exist between exploitation behavior and exploration behavior in students attempt to be ambidextrous.
Originality/value
The authors advance innovation research by expanding SDT to include relational perspective as an antecedent of ambidexterity (exploration/exploitation behaviors) and provide new insights into current understanding of research engagement in higher education settings. The authors highlight some implications for educational agencies seeking to promote the emergence of psychological and relational conditions to enhance novelty in post-graduate internationalized education.
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King Carl Tornam Duho, Emmanuel Tetteh Asare, Abraham Glover and Divine Mensah Duho
This study aims to examine the prevalence of transfer pricing and earnings management activities, and how they are impacted by corporate governance mechanisms.
Abstract
Purpose
This study aims to examine the prevalence of transfer pricing and earnings management activities, and how they are impacted by corporate governance mechanisms.
Design/methodology/approach
Using the political cost theory, the study provides insights into how opportunistic managerial behaviours which have a strong link to profit shifting and tax evasion are driven by corporate governance using data from 16 listed firms for the period 2008–2020.
Findings
The results reveal that the transaction-based transfer pricing model is better than the index-based model and the accrual-based earnings management model suits the political cost theory more than the real earnings management metric. Board size and female CEO increase transfer pricing aggressiveness but board independence, CEO tenure, CEO nationality and female Board Chairwomanship reduce transfer pricing aggressiveness. The findings also reveal the role of multinational enterprise status, private ownership, industry type, firm size, financial leverage, asset tangibility and firm age. For accrual-based earnings management, board independence, CEO tenure, and female Board Chairwomanship significantly decrease earnings management. Other factors include private ownership, firm size, and firm age.
Practical implications
The findings of the study are relevant for shaping industry-level policies on earning management, transfer pricing and related-party transactions. Since these opportunistic managerial behaviours are the foremost drivers of tax avoidance and profit shifting, the findings of this study provide relevant insights for practitioners, tax and other regulatory authorities, policymakers and the academic community alike.
Originality/value
This is among the premier studies on the transfer pricing and earnings management nexus with corporate governance factors using the political cost theory, especially in the developing country context. It also reveals the significant impact of gender and suggests the need for gender diversity in corporate management.
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King Carl Tornam Duho, Joseph Mensah Onumah, Raymond Agbesi Owodo, Emmanuel Tetteh Asare and Regina Mensah Onumah
The study examines the impact of risk on the profit efficiency and profitability of banks in Ghana.
Abstract
Purpose
The study examines the impact of risk on the profit efficiency and profitability of banks in Ghana.
Design/methodology/approach
Data envelopment analysis was used to estimate profit efficiency scores and accounting ratios were used to measure profitability. The panel corrected standard error regression was used to assess the nexus using a dataset of 32 banks from 2000 to 2015.
Findings
The paper found that the Ghanaian banking industry exhibits a variable return to scale property, suggesting that average costs change with output size. Profit efficiency score for banks closer to the efficiency frontier is 61%. Credit risk is significant in enhancing profit efficiency and return on equity. Market risk is relevant in improving profit efficiency, return on asset and asset turnover. To drive profitability, bank managers have to be committed to effective liquidity risk, insolvency risk and capital risk management. Operational risk reduces shareholders' returns. The impact of size, age, stock exchange listing, cost efficiency and competition have are all been discussed extensively.
Practical implications
The findings contribute to the knowledge on the risk-performance nexus and provide information that is valuable to academics, bankers and regulators for policy formulation. The findings are relevant to the newly established Financial Stability Council.
Originality/value
This paper appears to be among the premier attempts to examine the effect of various risk types identified in the Basel III framework on bank performance in Africa.
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Emmanuel Tetteh Jumpah, Richard Ampadu-Ameyaw and Johnny Owusu-Arthur
Creating employment opportunities for the youth remains a dilemma for policymakers. In many cases, policies and programmes to tackle youth unemployment have produced little…
Abstract
Purpose
Creating employment opportunities for the youth remains a dilemma for policymakers. In many cases, policies and programmes to tackle youth unemployment have produced little results, because such initiatives have failed to consider some fundamental inputs. In Ghana, youth unemployment rate has doubled or more than doubled the national average unemployment rate in recent years. The current study, therefore, examines how policies in the past two decades have affected youth unemployment rate and other development outcomes.
Design/methodology/approach
The study reviewed national economic development policy documents from 1996 to 2017 and other relevant policies aimed at creating employment opportunities for the youth, applying the content analysis procedure. Four main policy documents were reviewed in this regard. Data from secondary sources including International Labour Organisation (ILO), World Bank (WB), United Nations Development Programme (UNDP) and Ghana Statistical Service (GSS) were analysed to examine the trends in youth unemployment rate, human development index and GDP growth rate in Ghana over the years. There were also formal and informal consultations with youth and development practitioners.
Findings
The results of the study show that policies that promote general growth in the economy reduce youth unemployment, while continuation of existing youth programmes, expansion, as well as addition of new ones by new governments reduces youth unemployment rate. In particular, GDP growth and youth unemployment rate trend in opposite direction; periods of increased growth have reduced youth unemployment rate and vice versa. The period of Ghana Shared Growth and Development Agenda I & II witnessed better reduction (5.7%) in youth unemployment rate than any of the policy periods. This was not sustained, and despite the current youth employment initiatives, unemployment among young people still remained higher than the national average.
Research limitations/implications
The study provides relevant information on how development policies and programmes affect youth unemployment rate over time. In as much as it is not the interest of the study, the study stops short of empirical estimation to determine the level of GDP growth rate that can reduce a particular level of youth unemployment, which is a case for further research. Nevertheless, the outcome of the study reflects the data and methodology used.
Originality/value
To the best of the knowledge of the authors, this is a first study in Ghana that has attempted to directly link development outcomes such as youth unemployment to national economic development policies, although there are studies that have analysed the policy gaps and implementation challenges. This paper, therefore, bridges the knowledge of how development policies affect youth employment opportunities, particularly for Ghana.
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Emmanuel Tetteh and Janice Burn
The World Wide Web (WWW) offers exciting new opportunities for small and medium‐sized enterprises (SMEs) to extend their customer base into the global marketplace. However, in…
Abstract
The World Wide Web (WWW) offers exciting new opportunities for small and medium‐sized enterprises (SMEs) to extend their customer base into the global marketplace. However, in order to exploit these advantages in a global strategy, the SME needs to adopt an entirely different approach to strategic planning and management which can enable it to deploy an extensive infrastructure network based on shared resources with other firms. This paper presents a framework for the analysis and design of global strategies within the organisational context of SMEs using Internet‐based information technologies. Central to the framework – SMALL – is the transformation of the key attributes of an SME environment through a virtual organising perspective. The framework is supported by a number of case examples of SMEs operating in a global context and a detailed analysis of three Australian SMEs. It provides a new perspective to strategies for e‐business in SMEs and to e‐business research.
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Emmanuel Tetteh Asare, Bruce Burton and Theresa Dunne
This study aims to explore individual perceptions about how the government, as the main architect of policies and regulations, discharges strategic accountability in Ghana’s oil…
Abstract
Purpose
This study aims to explore individual perceptions about how the government, as the main architect of policies and regulations, discharges strategic accountability in Ghana’s oil and gas sector and, in so doing, promotes resource sustainability.
Design/methodology/approach
The study reports on a series of interviews with key actors using institutional theory as a lens for discussion and interpretation of results. This approach forms the basis for a number of specific contributions to knowledge regarding strategic accountability around natural resource discoveries.
Findings
Whilst many deeply-set problems appear to persist, the paper reports some favourable movement in public perceptions regarding institutional accountability that has not been identified previously. The empirical findings demonstrate how the three elements of institutional theory work together in an emerging country’s natural resource industry to drive a potentially holistic strategic institutional legitimacy, contrary to the existing pervasive picture of detrimental regulative, normative and cognitive institutionalism found within the region.
Practical implications
The findings suggest that, contrary to existing regional evidence regarding institutional financial accountability practices around natural resources, Ghana has made favourable strides in terms of strategic accountability discharge. This discovery implies that with persistence and commitment, a meaningful degree of intelligent strategic accountability can be achieved and, with appropriate empirical methodology, identified and rationalised.
Social implications
The persistent coercive pressure from the Ghanaian society that caused the government to listen to overtime and take positive steps in the institutionalisation of their strategic accountability process which translated into a holistic institutional legitimacy that has eluded the sub-region for decades, is a glimmer of hope for other societies within the sub-Saharan region that all is not lost.
Originality/value
The paper suggests an empirically driven approach to understanding the institutionalisation of strategic accountability practices and their impact on sustainability around natural resources in sub-Saharan Africa. The focus on the strategic aspect of accountability – rather than the financial as in most prior work – and the consideration of opinions at more than a single point in time permits the identification of novel evidence regarding accountability in emerging economies.
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Emmanuel Tetteh Asare, King Carl Tornam Duho, Cletus Agyenim-Boateng, Joseph Mensah Onumah and Samuel Nana Yaw Simpson
This study aims to examine the effect of anti-corruption disclosure on the profitability and financial stability of extractive firms in Africa. It also tests the convergence of…
Abstract
Purpose
This study aims to examine the effect of anti-corruption disclosure on the profitability and financial stability of extractive firms in Africa. It also tests the convergence of profitability and financial stability.
Design/methodology/approach
The study uses an unbalanced panel data of 27 firms operating in five African countries covering the period 2006–2018. Anti-corruption assessment is done in line with GRI 205: Anti-Corruption. Profitability is measured using the return on asset and return on equity, whereas the z-score measures financial stability. The study uses the panel-corrected error regression technique for estimation.
Findings
There is evidence that corruption disclosure reduces the financial stability of firms. Disclosures on corruption analysis and corruption training are the main factors driving the reduction in financial stability. The effect on profitability is not significant except in the case of disclosure on corruption response, which also reduces profitability. There is strong statistical evidence to suggest that profitability and financial stability of extractive firms converge. This suggests that less-performing firms catch up with high performers.
Research limitations/implications
The study has relevant implications for practitioners, policymakers and the academic community. The study uses data that is skewed towards large extractive firms.
Originality/value
This study is premier in exploring the effect of anti-corruption disclosure on performance metrics among extractive firms in Africa. It is also unique in providing a test of both beta and sigma convergence of performance among the firms.