College of Humanities & Social Sciences

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Browsing College of Humanities & Social Sciences by Author "ABANKWA JOSEPHINE"

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    The impact of lending rate on the financial performance of oil marketing companies in Ghana
    (KNUST, 2021) ABANKWA JOSEPHINE
    The purpose of the research is to examine the effect that lending rates have financial performance of Oil Marketing Companies in Ghana. The study is carried out using two specific objectives which are to examine the effect of lending rate on financial performance of indigenous Oil Marketing companies in Ghana and to examine other factors that influence the financial performance of indigenous Oil Marketing companies in Ghana. The researcher approaches the thesis using quantitative design and depends on secondary data for its analysis. The results show that lending rates are negatively related to the financial performance of oil marketing companies. Based on this, the study concludes that an ineffective monetary policy that results in hikes in interest rates may be injurious to the financial performance of oil marketing companies. It is recommended that government should set up an Oil Marketing Capital fund to support all the oil marketing companies that are struggling with financial performance owing to high lending rate. To ensure the success of such a fund, the government should set up a committee which will scrutinize the performance of the firms for financial assistance. The study reveals that working capital management has a positive effect on financial performance. It is, therefore, recommended that management and board of directors of Oil Marketing Companies should pay attention to the working capital management. They should develop a strategic governance framework for working capital management to ensure that challenges confronting managing daily activities of them firms are addressed