Browsing by Author "Akwaa-Sekyi, Ellis Kofi"

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    An investigation into aggregation bias: the case of stocks and treasury bill returns in Ghana
    (Cogent Economics & Finance, 2024) Dunyo, Dodzi K.; Akwaa-Sekyi, Ellis Kofi; Frimpong, Joseph Magnus; Peprah-Yeboah, Akua; 0000-0002-9497-568X
    The paper investigates aggregation bias by comparing the risk and returns characteristics of stock exchange-traded shares and Treasury bills (T’bills) in Ghana. The study uses end of period annualized data on T’bills and stocks returns, and inflation from 1990 to 2020. We mainly consider four separate investment periods: 1990–2000, 2001–2010, 2011–2020, and 1990–2020 (i.e. the aggregated period) in order to determine possible aggregation bias occurring from lumping the years together. We measure average annual returns, standard deviations, co-efficient of variations, Sharpe ratio, ANOVA, Jarque-Bera test, maximum drawdowns (MDD), and correlation analysis to determine risk and return characteristics of the two instruments. The study finds that T’bills compared to stocks shows higher returns yet lower risk, thereby indicating an inverted yield curve. Levene’s Test for Equality of Variances indicates stocks significantly outperformed T’bills over the 31-year aggregated period. The study reveals the presence of aggregation bias as stock and T’bill risk and return characteristics of two segregated periods (i.e. 1990–2000 and 2011–2020) contradict the general expectation of risk-return trade-off theory contrary to that of the aggregated period. The MDD, ANOVA results, Anova F-test and Welch F-test reveal aggregation bias for T’bills but not for stocks. We recommend future studies to ensure that analysis and conclusions made do not suffer aggregation bias by disaggregating aggregated units.
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    The impact of universal banking on the banking industry in Ghana
    (2008-11-17) Akwaa-Sekyi, Ellis Kofi
    There has been an increasing convergence between the activities of investment and commercial banks. The general trend has been towards downstream universal banking where banks have undertaken traditionally non-banking activities such as investment banking, insurance, mortgage financing, securitization, and particularly, insurance. The economic debate revolves around certain questions: first, will banks be more or less efficient than existing producers when they provide the proposed service? Second, will the extension of banking powers affect the stability of the financial system thereby making customers more satisfied? The study tried to find out whether the profitability, asset quality and liquidity of the banking industry has been better in the period of introduction of universal banking than before. Views of 298 bank customers were sought as to whether they are satisfied with the services being provided. Paired sample t-test was conducted to find significant differences in the means of the secondary data which measured financial performance of the banking industry while descriptive presentation in charts and cross-tabulations were used for the survey bank customers. It was found that there were large significant effects of universal banking on the profitability of the banking industry. The study failed to recognize significant effect of universal banking on the asset quality of the banking industry. The survey indicated much customer satisfaction especially in the automated services being provided and a competitive banking industry but banks have to reduce turn-around time at the banking halls. However, inconsistencies in the figures from annual banking reports and style of presentation were some of the limitations. The study should also have covered low-rated banks in the industry.