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1 – 3 of 3Elvis Kwame Agyapong, Louis David Junior Annor and Ebenezer Bugri Anarfo
This paper evaluates how bank dynamics, governance structures and financial sector development drive rural banks’ information and communications technology (ICT) investment in the…
Abstract
Purpose
This paper evaluates how bank dynamics, governance structures and financial sector development drive rural banks’ information and communications technology (ICT) investment in the Ghanaian economy.
Design/methodology/approach
Data for the empirical inquiry were compiled from relevant sources including World Development Indicators (WDI), World Governance Indicators (WGI) and ARB Apex Bank from 2014 to 2020. Prais–Winsten panel corrected standard errors (PW-PCSE) was employed in estimating and verifying hypothesized relationships for the study.
Findings
The results suggest that return on assets (ROA) and bank size improve rural banks’ ICT investment. Moreover, telecommunication development and government effectiveness have significant positive impact on ICT investment among rural banks in the Ghanaian economy. The results further show that telecommunication development has a positive moderating effect on regulatory quality and ICT investment nexus among rural banks in Ghana. Financial development, inflation and liquidity risk were found to negatively affect ICT investment among rural banks in Ghana.
Originality/value
The study is premised on four main motivations; (1) the growing role that ICT plays in development outcomes and firm performance (FP), as well as its potential for comparatively increased penetration among African banks and banking institutions (2) the importance of governance for innovation and investment in ICT, (3) banking regulation and (4) gaps in the literature. Previous studies on ICT investment highlight its impact on profitability but little on determinants of banks’ ICT investment in the emerging market context, especially moderating role of governance and ICT diffusion.
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Louis David Junior Annor, Elvis Kwame Agyapong, Margarita Robaina, Elisabete Vieira and Ebenezer Bugri Anarfo
This study sought to examine the interaction between rural bank performance, information and communication technology (ICT) investment, ICT diffusion and financial development.
Abstract
Purpose
This study sought to examine the interaction between rural bank performance, information and communication technology (ICT) investment, ICT diffusion and financial development.
Design/methodology/approach
Data were sourced from the Association of Rural Banks (ARB) Apex and World Development Indicators (WDI) for the period 2014–2020. A total of 122 rural banks were used for this study. The study adopted the two-step system generalized method of moments (SGMM) estimation technique in assessing the interactions among variables.
Findings
This study found compelling evidence to support the positive effect of ICT investment on banks’ performance (return on asset and net interest margin). Further, ICT diffusion and financial development positively influence banks’ performance. The results show a positive moderating effect exerted by ICT diffusion and financial development on the impact of bank risk (bank stability) and ICT investment on all three performance measures.
Originality/value
The study focuses on the rural banking sector in the Ghanaian economy, compared to related studies that examine the subject matter for commercial banks. The moderating effects of ICT diffusion and financial development are assessed to guide policy on rural banking development in Ghana.
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Elvis Kwame Agyapong, Louis David Junior Annor and Williams Ohemeng
This paper evaluates the effect of corporate social responsibility (CSR) on the performance of rural banks, as well as the moderating influence of effective governance on the…
Abstract
Purpose
This paper evaluates the effect of corporate social responsibility (CSR) on the performance of rural banks, as well as the moderating influence of effective governance on the surmised nexus.
Design/methodology/approach
Annual data for 122 Ghanaian rural banks from ARB Apex Bank, World Development Indicator (WDI) and World Governance Indicator (WGI) for the period 2014–2020 were compiled for analysis. A two-stage system generalized method of moments (GMM) estimator was used in examining the relationships under study.
Findings
The findings suggest that CSR has a significant negative effect on return on assets (ROA), return on equity (ROE) and stability (Z-score). On the other hand, further results showed that CSR positively influences net interest margin (NIM). Again, the results suggest that government effectiveness exerts a positive moderating influence on the effect of CSR on performance from all four measurement criteria (ROA, ROE, NIM and Z-score) in the Ghanaian rural banking sector.
Originality/value
The study focuses on the rural banking sector in the Ghanaian economy, compared to related studies that examine the subject matter for commercial banks. The moderating influence of governance structures is also assessed on the relationships to guide policy on rural banking.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0116.
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