The effect of financial irregularities on the economic performance of the ghanaian economy: the mediating roles of interest and inflation rates
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Date
2023
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knust
Abstract
The purpose of the study was to examine the effect of financial irregularities on the economic performance of the Ghanaian economy: The mediating Roles of interest and inflation rates. The following are specifi objectives of the study are to establish the relationship between financial irregularities (tax, cash, procurement and stores) and economic performance (GDP) of Ghana, to determine the effects of macro-economic variables (Interest Rate and Inflation Rate) on economic performance (GDP) of Ghana, and to determine mediating role of macro-economic indicators on the relationship between financial irregularities and economic performance in Ghana. A time series data data relating to the variables was collected covering the period of 1990 to 2022 for the analyses. The pearson correlation, multiple linear regression and structural equation model was used to analyse data. The study found that relationship between economic performance and financial irregularities, demonstrated a relatively strong positive statistically significant link between financial irregularities and GDP between 1990 and 2022. The study also revealed that inflation has a significant and positive influence on economic performance. Moreover, interest rate has a significant and positive effect on economic performance. The result indicated that the relationship between financial irregularities and economic performance is mediated by both interest rate and inflation rate. The study recommends prudent measures to be taken to prevent financial irregularities and control inflation and interest rates.
Description
A thesis submitted to the department of accounting and finance college of humanities and social sciences in partial fulfillment of the requirements for the degree of Msc. Accounting and Finance