Department of Accounting Studies Education

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https://ir.aamusted.edu.gh/handle/123456789/549

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Browsing Department of Accounting Studies Education by Author "Effah , Eric Sarkodie"

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    Examining the Economic Interaction between Liquidity and Firms’ Financial Performance: Evidence from the Ghana Stock Exchange
    (Journal of Economics, Management and Trade, 2020-12-14) Antwi , Joseph Baafi; Duodu, John Kwame; Effah , Eric Sarkodie; Boachie, Williams Kwasi
    This study examined the economic interaction between liquidity and financial performance of manufacturing firms listed on Ghana Stock Exchange (GSE). Specifically, the study sought to examine the relationship between liquidity as measured by current ratio, quick ratio and cash ratio and firms’ financial performance as measured by return as assets, return on equity and return on capital employed and determine the interactive effects on share value of firms. Data extracted from the audited and published annual reports of twenty-one (21) firms for the period 2008 to 2019 was used for the study. The study used correlation analysis for relationship and ANCOVA modeling for interactive effects. The study found that there was a weak positive statistically significant relationship between return on assets and measures of liquidity; there was a weak positive statistically insignificant relationship between return on equity and measures of liquidity; there was a weak negative statistically insignificant relationship between return on capital employed and measures of liquidity. The study also found positive effects of liquidity and performance on share value. However, the magnitude of interactive effect of liquidity and firm’s performance was much higher that the single effects. Based on the findings, the study recommended among others that authorities in listed manufacturing firms in Ghana should try and maintain an ideal level of liquidity that can meet their firms’ operational needs
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    Microcredit and Poverty Reduction in Ghana
    (Proceedings of the 30 th International Conference, 2022-05) Effah , Eric Sarkodie; Baafi, Joseph Antwi
    Interest in poverty sprang across the world and necessitated a worldly reduction policy strategy through the millennium development goals. The emergence of the Sustainable Development Goals (No Poverty by 2030) has taken interest in poverty to a higher level. In search for strategies to combat poverty, one strategy was common to all: microcredit. Governments, donors and NGOs around the world responded enthusiastically. In the acknowledgment of microcredit, the UN celebrated the year 2005 as a year of microcredit (Mia, 2005). As a result, microcredit as a financing instrument is perceived to be effective means against hunger and poverty (Duflao, 2007). Ghana stands visible in the area of microcredit (319 microcredit institutions as at March, 2018- BoG, 2018). However, few studies have investigated the effects of microcredit on poverty reduction in Ghana. The factors used are purely qualitative and lacks the quantitative components. Moreover, these studies viewed poverty from a single dimension and lacked nation-wide coverage. This study employs the Foster, Greer and Thorbecke (FGT) measures of poverty to provide diversified ways of measuring poverty. Also the study adopted the ordered logistic regression to analyse the effect of microcredit on poverty. It was found that amongst ten administrative regions, the incidence of poverty and poverty gap are not evenly distributed. Also, persons who take loan are likely to move into a better welfare bracket and thus reducing poverty. It is recommended it has to be the policy of the central government to educate it citizens on microcredit.
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    The Determinants of Mergers and Acquisitions in Ghana
    (n American Journal of Economics, 2022-05) Nti , Kofi Agyeman; Joseph, Antwi Baafi; Effah , Eric Sarkodie
    Background: In this context of uncertainties and the unknown based on economic, financial, and health crises, one of the ways to save companies is the operations of mergers or acquisitions. But not all mergers bring the expected results. An Avalanche of literature has indicated several factors that promote the decision of mergers and acquisitions. Purpose: This paper aimed to investigate the determinants of mergers and acquisitions of listed firms on the Ghana Stock Exchange. Specifically, the study sought to identify and examine the relationship that exists between GDP, Inflation, FDI, Stock Returns, and interest rate on the mergers and acquisitions of listed firms, well as evaluate the failures of mergers and acquisitions in the country. Methodology: The study used an explanatory research design. The population for the study was all mergers and acquisitions between 2010-2018 totaling twenty-five (25). The study used secondary data from Ghana Stock Exchange. Using sample data spanning between 2010 and 2018, the study adopted the GMM estimation technique in its analyses. Findings: The findings from the study revealed that indeed GDP, FDI, and interest rate exhibit a positive and significant effect on mergers and acquisitions of listed firms, whilst stock returns was found to negatively impact merges and acquisitions. Inflation rate was found not significant in the analyses of the study. The study also showed that factors such as limited or no involvement from the owners, theoretical valuation vs. the practical proposition of future benefits, lack of clarity and execution of the integration process, cultural integration issues, actual cost of a difficult integration, and high cost of recovery and negotiations errors are the major causes of the failures of mergers and acquisitions in Ghana. Recommendation: The study recommends that the Ministry of Finance and Ministry of trade must put stringent policies to curb systematic risk, as well as create a conducive environment to promote the inflow of foreign investment into the country. Keywords: Determinants, Mergers and Acquisition, Generalized Methods of Moment.
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    Why Should We Pay Attention to Working Capital Management? A Case of Ghana
    (MDPI, 2024-03-11) Baafi Antwi ,Joseph; Effah , Eric Sarkodie; Duodu, John Kwame; Kumah, Seyram Pearl
    The paper examines the nexus between working capital management (WCM) and financial performance of listed non-financial firms in Ghana. An unbalanced panel data for the period 2008 to 2021 was used for the study. It is observed that the residual terms of the models were cross-sectionally independent and all the series were first-differenced stationary and cointegrated in the long term The elasticities of the predictors were explored via the Fully Modified Ordinary Least Squares (FMOLS) and the Dynamic Ordinary Least Squares (DOLS) techniques. The findings of the study indicate that WCM proxied by accounts receivable period (ACP), accounts payment period (APP), and inventory turnover period (ITP) have significant positive effect on firms’ financial performance measured by return on assets (ROA), return on equity (ROE), and return on capital employed (ROCE). This suggests that the working capital management practices of non-financial firms in Ghana improve their financial performance. Also, firm size and asset growth improve firm financial performance. On the causalities between the variables, bidirectional causalities between ACP, APP, ITP, size, and thecompanies’ ROA, ROE, and ROCE are disclosed. Finally, causality from growth to the ROA, ROE, and ROCE of the firms are unraveled. It is recommended that policy makers of non-financial firms in Ghana should not overlook WCM practices in their financial decisions, since ignoring them could seriously compromise the firms’ short- and long-term sustainability