This study aims to seek to fill a gap in regulatory impact assessment in developing countries by presenting an analysis of how formal regulation impact on the efficiency and…
Abstract
Purpose
This study aims to seek to fill a gap in regulatory impact assessment in developing countries by presenting an analysis of how formal regulation impact on the efficiency and productivity of financial non-governmental organisations (FNGOs) in Ghana. Much has been written about the formal financial sector, but very little is known about the lower end of microfinance and the impact of formal prudential regulation on FNGOs providing microfinance services. The Bank of Ghana (BOG), nevertheless, in the year 2011, extended formal prudential regulation to FNGOs without any empirical basis. This study uses regulatory theories and empirical evidence to aid in the evaluation of whether formal prudential regulation is appropriate for FNGOs operating within the microfinance sector.
Design/methodology/approach
Empirical evidence derived from FNGOs, regulatory agents, consumers and financial lawyers within the Greater Accra and Ashanti Regions of Ghana served as the basis of the analysis in this study. Descriptive statistics, frequency counts and percentage scores, were used to analyse the data collected.
Findings
The existing structures of FNGOs in Ghana are unsuitable for formal prudential regulation. The BOG does not have adequate staffing and funding to supervise and monitor the microfinance activities of FNGOs. Formal prudential regulation could impede growth and efficient delivery of microfinance services.
Research limitations/implications
The BOG is the only regulatory agency responsible for regulating the financial market in Ghana, thus access to officers with knowledge in the regulatory regime was very limited.
Practical implications
The study revealed in depth information about FNGOs, microfinance and the impact of formal prudential regulation on FNGOs.
Originality/value
The study is the first to use empirical studies and theories of regulation to assess the impact of extending formal prudential regulation to FNGOs in Ghana. Data from the regulator, the regulated and consumers, the key players in any regulatory process, served as the basis of the analysis in the study resulting in the unravelling of in-depth information on the regulation of FNGOs.
Details
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Michael Asiedu Gyensare, Olivia Anku-Tsede, Mohammed-Aminu Sanda and Christopher Adjei Okpoti
– The purpose of this paper is to investigate the impact of transformational leadership on employee turnover intention through the mediating role of affective commitment.
Abstract
Purpose
The purpose of this paper is to investigate the impact of transformational leadership on employee turnover intention through the mediating role of affective commitment.
Design/methodology/approach
The study examines conceptual relationships in the Ghanaian context, based on structural equation modelling with maximum likelihood estimation, using sample employees from the private sector organizations. In addition, the mediation analysis is conducted with Sobel’s test and 95 per cent CI bootstrap analysis.
Findings
The study shows that affective commitment would decline workers’ quitting intention and serves to promote a degree of trust and willingness to follow their leaders’ philosophy, ideology, vision and guidance in the organization. Hence, affective commitment fully mediates the relationship between transformational leadership and employee turnover intention.
Practical implications
To help lessen employees quitting intentions, both middle and top-level managers should endeavour to create an atmosphere of trust, admiration, loyalty and respect for their employees.
Originality/value
Overall it is shown that affective commitment was the mechanism through which transformational leadership influences employees’ turnover intentions in the SLCs in Ghana.