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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/10227

Title: Determinants of financial performance of savings and loans companies in Ghana: A case of Opportunity International Savings and Loans Limited
Authors: Adu Asabereh, Samuel Opoku
Issue Date: 24-Jan-2017
Abstract: The main purpose of this study was to examine the determinants influencing financial performance of savings and loans companies in Ghana: A case of Opportunity International savings and Loans Company limited. The study specifically identified the factors influencing the performance of Opportunity International and further examined the financial products and services the institution offers. Lastly, the study assessed the challenges facing Opportunity International. The research revealed that capital adequacy ratio is non-stationary at the 5 percent significance level but became stationary after first-difference. Thus, capital adequacy ratio is integrated of order one ( I(1)). Also, credit risk is non-stationary even at the level. It attained the stationary status after first-difference, thus being an I (1) series. Inflation is non-stationary at the level and become stationary after first difference and Management inefficiency at 1 percent level of significance is stationary. Log of Net profit at the 5 percent level of significance is non-stationary but became stationary after first –difference and hence an I (1) series. Cointegration test was carried out to determine whether there is a level of relationship between profitability of Opportunity Savings and Loan Limited and its determinants. In the long run, management inefficiency was statistically significant. In the short run, capital adequacy was statistically significant and a meaningful addition to the model because changes in the predictor’s value are related to changes in the variable. From the survey group and individual loan products are the most widely patronized products in Opportunity International representing 30% and 23% respectively. Multiple borrowing from same clients across several organizations but with no data on the credit reference bureau and poor addressing systems were among the challenges identified. 
Description: A thesis presented to the Department of Economics, College of Humanities and Social Sciences in partial fulfillment of the requirement for the degree of Master of Economics in Money, Banking and Finance, 2016
URI: http://hdl.handle.net/123456789/10227
Appears in Collections:College of Arts and Social Sciences

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