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Institutional Repository of the Kwame Nkrumah University of Science and Technology

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Using multiple linear regression to predict banks performance in the Ghanaian economy.
(KNUST, 2016-07) ASANTE – KORANTENG, JONES
Globalization and technological advancement has created a highly competitive market in the banking and finance industry. The level of offshore banking in both developing and developed countries today is evidence to this fact. Since the financial wheel is critical in any development paradigm, the role of banks is even more critical. Therefore the survival and performance of banks is of much interest not only to policy makers and shareholders, but it is also of interest to researchers too. Performance of the industry depends heavily on the accuracy of the decisions made at managerial level. This study uses multiple linear regression technique in predicting the performance of banks in Ghana. The study then evaluates the performance of the techniques with a goal to find a powerful tool in predicting bank performance. Data of three banks for the period 19912015 was used in the study. Return on Asset (ROA) was used as a measure of bank performance, and hence is a dependent variable for the multiple linear regression. Eight variables including LNTA, NII/TA (Log-interest income divided by total assets), NIE/TA (total overhead expenses divided by total assets),LLP/TL (loan loss provisions to total loans),EQUASS (Shareholders’ equity as a fraction of total assets) and External determinants: LNGDP (natural log of GDP), MSG (money supply growth rate), and INFL (inflation rate) were used as independent variables. Results from the study reveal that the performance of the Banks has been highly volatile with the banks recoding negative profits during some periods within the two decades under study. The study also revealed that non-interest income, non-interest expense, bank's capital strength, natural log of total assets, growth of money supply, and annual rate of inflation are significant key drivers of banks‘ profitability in Ghana. However, the size of the Ghanaian economy and loan loss provision or provisions for bad debt did not have any significant impact on the banks profitability.
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Factors influencing financial performance of teachers fund (2011 – 2015) .
(KNUST, 2016-09) OPPONG, GODFRED
The study investigated the factors affecting the performance of Teacher Fund, the effect of the Fund on teachers’ livelihood and the challenges affecting the management of the Fund. Primary data from fifty (50) teachers and ten (10) staff, and secondary data from the financial statements of the Fund were used for the analysis. Trend, regression and descriptive statistical analyses were used to present the findings. The findings revealed that only members’ contribution significantly influenced the performance of the Fund. Even though the Fund provided members with loan facilities, some complained about the cumbersome procedures, delays and ceiling on the loan. Other challenges were over-diversification, poor savings and investment culture among teachers, IT systems, fluctuating returns on investment and high service charges by Controller and Accountant General’s Department. The study recommended for the computerization of loan application system, increasing loan ceiling and increasing advertising to attract new members to the Fund.
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Assessing the financial management practices of some selected SMES in Kumasi metropolis.
(KNUST, 2016-08) FRIMPONG, KWABENA ANINFA
Small and Medium-sized Entities (SMEs) are very important to the economic growth and development of a nation. Unfortunately, a large number of SMEs in Ghana do not survive for a long period. This study believes that prudent financial management practices can help SMEs become profitable and for that matter stay in business for a long period of time. The main objective of the study is to assess the financial management practices of some selected SMEs in the Kumasi Metropolis. The study used a sample of sixty (60) SMEs operating in the Kumasi Metropolis. The study was a cross sectional survey which used primary data predominantly. The study employs a purposive random sampling technique in selecting the sample size. The findings indicate that financial management practices such as working capital management, financing, investing, financial reporting and Accounting Information Systems (AIS) are strictly adhered to the sixty SMES selected. The results further indicate that one major challenge militating against the financial management of these selected SMEs in the metropolis is the lack of entrepreneurial and managerial skills representing a higher score of (91.67%) were agreed by the respondents. Increasing financial responsibility is placed on these SMES who have little or no skills in financial management. Lack of credit facilities and long term loans representing (65.00%) was the second challenge the majority of the respondents cited as a major challenge affecting the financial management of their businesses. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings to appreciate the importance of financial management practices to the sustainability of SMEs in Ghana.
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Assessing the bookkeeping practices of some selected small and medium scale enterprises in the Suhum municipality.
(KNUST, 2016-08) OPARE, SAMUEL
This study discusses the bookkeeping practices of some selected small and medium scale enterprises in the Suhum Municipality in the Eastern Region of Ghana. The study examined the detailed profile of SMEs, bookkeeping practices, whether it conforms to best practices and the challenges they face in their bookkeeping practices. This is to guide policy makers to develop accounting and bookkeeping modules that aims to improve ways by which SMEs bookkeeping can meet international best practices. The research was conducted in the form of a survey. Information was collected from selected SMEs in order to describe some aspect of the population of which the target constitutes a part. The descriptive sample survey helped the researcher to obtain a large sample of information, the result of which could be used to generalize the entire population. The main way through which information were collected was through administering of questionnaires and interviews; answers to these questions by members of the group constituted data for the study. Irrespective of the contributions of SMEs to national development, proper bookkeeping play critical role in the performance and growth of small businesses. The research indicated there was lack of professional skills particularly in bookkeeping procedures among SMEs in Suhum Municipality. It is therefore imperative for accounts clerks to be hired whether businesses are manned by owners or employees no matter the cost, for accounts to be appropriately maintained to enable SMEs keep track of business activities and used it as a source for effective economic planning. In order to ensure bookkeeping and financial management practices of SMEs meet international and best standards, the NBSSI/BAC should collaborate with professional accounting bodies particularly ICA-Ghana to develop accounting and bookkeeping modules that will serve critical needs of SMEs. Government should grant tax incentives to relieve the plight of SMEs that employ professional accounting staff to manage their bookkeeping duties.
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Long memory behaviour and predictability of stock returns. A case of Ghana stock exchange.
(KNUST, 2016-08) ABABIO, EMMANUEL NKRUMAH
This research work explores the long memory behaviour on Ghana stock Exchange (GSE). It further seeks to examine long memory in both equity returns and volatility using the weak-form version of the efficient market hypothesis (EMH) as a criterion. The estimates are based on daily closing prices of seven (7) stocks listed on the GSE. The data were changed into compounded returns by taking the first difference of the natural logarithm of the daily closing prices. The study employs unit root, variance ratio, ARFIMA and FIGARCH models to estimate the long memory parameter in order to unearth the weak-form inefficiency ascertained by other researchers. The results showed that these stocks display a predictable component in returns. In general, these findings contradict the precepts of the EMH and a variety of remedial policies are suggested. The evidence which recommends the null hypothesis of the price series as random walk processes is strongly rejected for all the stocks, at any of the intervals of k at the 1% significant level. The results of the ARFIMA-FIGARCH model suggest that stock returns in GSE are characterised by stochastic processes which have a potentially predictable component, this in turn implies a departure from the EMH suggesting that relevant market information was only partially reflected in stock price changes. This pattern of time dependence in stock returns may allow for past information to be used to improve the predictability of future returns. To improve the efficiency of the market, there must be approval of electronic trading platform, which takes into account the selection of a fundamental store framework that, can enhance the accuracy to speed the flow of information in order ensure a safe flow of information to market applicants and enhance the efficiency of the market.
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The impact of corporate social responsibilty reporting on a firm’s value; case study of HFC Bank Ltd, Accra.
(KNUST, 2016-08) AFRIFA, PATRICK
The study sought to provide reliable information relative to how CSR reporting affects the value of a firm. The objective of the study was to analyze how over time stock price react on the Ghana Stock Exchange to the reporting of CSR initiatives by HFC Bank using Event Study method. The study used the Mixed Research Method – a combination of qualitative and quantitative research designs – and sampled 50 employees of HFC Bank using the stratified sampling method. After data collected was analyzed using Excel and SPSS, it emerged that CSR reporting had positive impact on share price. Time-Series data analyzed for the years under review suggests that CAAR for event window is always greater the pre-event period CAAR. The study concludes that CSR reporting positively affects the value of firms and also CSR increases the reputational capital (Goodwill) of businesses. Based on these findings, the study recommends that, firms must integrate CSR reporting into its CSR programs. It must be reported quarterly on radio, television, newspapers, social media, websites etc. This will enable organizations to make known its contribution to socioeconomic development to most of its customers and prospects as well as beneficiaries of its CSR initiative.
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An assessment of the effectiveness of revenue mobilization and expenditure on the performance of the national health insurance schemes-evidence from the Eastern Region.
(KNUST, 2016-08) APPIAH, ISAAC NYARKO
This study sought to do an assessment of the effectiveness of revenue mobilization and expenditure on the performance of the national health insurance schemesevidence from the Eastern region. The study is to identify the various sources of revenue and expenditure by the NHISs’ in the Eastern region. It provides pragmatic policy for assessing how revenue mobilization and expenditure sources are managed by the schemes. Due to the predominant nature of agriculture as the main occupation of the region and faced with high levels of poverty, Eastern region was preferred for this study to assess how the schemes are able to mobilize the needed amounts in their operations. Questionnaires, interview, and observations were the main data collection instruments used. The study assessed performance of the schemes with the aid of CAGR that is Compound Annual Growth Rate model. Likert five scale rating was also employed to identify achieving revenue targets and outreach programs as factors to the effectiveness and challenges respectively. Data analyzed were made with the help of MS excel, tables, figures, percentages. The study also revealed that among the revenue sources, Administrative fees otherwise known as processing fees was the main source of revenue to the schemes, whilst chief among the identified expenditure sources, electricity consumption was high. The study recommended the following set of measures that will help enhance revenue mobilization: electronic or mobile alerts, electronic transaction processing, automated data processing audits internal controls, proper demarcation, monitoring of duties and responsibilities, public education, training, workshops, and education.