Firm Performance In Ghana Research Articles

Special economic zone dynamics and firm performance: Evidence from an emerging economy

AbstractThe empirical literature on Special economic zones (SEZs) has shown that SEZs have become critical policy tools for advancing economic and firm performance, especially in developing economies where financial capital, human capital, technology and technical know‐how to drive these performances are in limited supply. While the importance and effects of SEZs cannot be overemphasised and are well documented, particularly in Asia, SEZs' operationalisation, structure and policy practice appear to vary, especially in Ghana and hence a need to examine SEZ effects on firm performance in Ghana. Thus, following the difference in the structure and practice of SEZs and its limited empirical evidence in African emerging economies, this present study employs analysis of variance, treatment estimation and regression models covering 328 firms between 2018 and 2021 to shed insights on how SEZ dynamics/features affect firm performance (measured with total factor productivity, labour productivity, profitability, revenue generation and value added) in Ghana. Our results suggest firms operating under SEZ dynamics have varying significant effects on firm performance. Thus, while firms registered as SEZ firms and operating in SEZ enclaves and firms registered as SEZ firms and operating outside SEZ enclaves have significant positive effects on the performance indicators of firms, firms that are not registered as SEZ firms and operating outside SEZ enclaves detracted firm performance. Clearly, firms that possess SEZ dynamics/features tend to promote performance of firms as denoted in the empirical literature and theoretical approaches to SEZ. Arguably, the tax holidays, cheaper tariffs and infrastructural benefits derived by SEZ registered firms boost their productivity, revenue and profit performance higher than non‐SEZ registered firms. These results suggest policymakers/government should reduce administrative bottlenecks of registering as SEZ firms and operating in SEZ enclaves to increase the number of SEZ firm operations to induce performance and create room for fiscal revenue.

Relationship between corporate governance and firm performance in Ghana: does compliance to national governance frameworks matter?

Relationship between corporate governance and firm performance in Ghana: does compliance to national governance frameworks matter?

Does Firm Size Moderate the Effect of Leverage on Performance of Firms in Ghana: A Dynamic Panel Estimation Approach

Leverage has been argued to be a crucial factor in determining profitability, and a number of studies have looked at its direct impact on firm performance, but the conclusions have been equivocal and contested. Using a dynamic panel model, the study attempted to contribute to the growing literature by first examining the impact of leverage on firm performance in Ghana, as well as the moderating function of firm size. The objectives that guided the study were the effect of leverage on firm performance and how firm size moderates the effect of leverage on firm performance. The study’s data came from listed companies. The study’s sample consisted of all the companies listed on the Ghana stock exchange with particular focus on the financial firms. Dynamic panel estimation approach, specifically Arello and Bond GMM estimation technique was used for the analyses. The results show that the effect of leverage on firm performance depends on the size of the firm. For small firms, leverage has negative effect on performance. But as firms increase in size, the negative effect of increasing leverage reduces and turns positive for very large firms. The study recommended that leaders at the firm’s helms of affairs can consider diversifying their products and service in order to expand their reach and increase their size which can positively affect performance. The study finally recommended for further studies be conducted on all firms and on all financial firms listed on the Ghana stock exchange.

The Influence of Corporate Social Responsibility on the Financial Performance of Firms in Ghana: The Moderating Role of Board Independence and Diversity

The Influence of Corporate Social Responsibility on the Financial Performance of Firms in Ghana: The Moderating Role of Board Independence and Diversity

Effect of supplier appraisal on firm performance in Ghana: Views of employees of selected manufacturing firms

In Ghana, recent financial sector clean-ups and reforms have impacted the operations of several corporations in the business-to-business market. Coupled with this, several issues have been reported concerning procurement practises in the past few years. Regardless of corporate governance practises and public procurement regulations, institutions in Ghana are yet to fully realise the relevance of supplier appraisal. Grounded by the resource base theory, the study examines the effect of appraisal of suppliers’ financial stability, technical capacity to produce, adherence to systems and procedures, conformance to legislation, and suppliers’ supply chain on the performance of industrial firms in Ghana. A sample of 171 employees was drawn from a total of 250 employees. Data processing and analysis were undertaken through the partial least squares structural equation modelling (PLS-SEM) estimator. The results clearly suggest that firms’ technical capacity does not constitute firm resources that translate to firm performance. However, firms’ financial stability, adherence to systems, conformance to legislation, and supply chains are regarded as firm resources that contribute to the overall performance of the firm. We conclude that supplier evaluation is a significant predictor of manufacturing firms’ performance.

The Relationship Between Capital Sructure and Financial Performance of Firms in Ghana and Nigeria

This study aimed to investigate, using a sectorial analysis, the relationship between capital structure and financial performance and consider the effect of debt maturity on the relationship. the relationship between capital structure and financial performance, considering the debt maturity, using 425 cross-sectional firm-year samples from firms in Ghana and Nigeria from 2014 to 2019. The empirical findings suggested a significant negative relationship between capital structure and financial performance. Debt maturity did not affect the relationship between capital structure and financial performance. However, the Industry influences the direction of the relationship between capital structure and financial performance. Also, debt maturity influences the capital structure performance relationship in specific sectors but not the market. This paper extends on previous studies on the relationship between capital structure and financial performance by incorporating sectorial and debt maturity on firms in Ghana and Nigeria. The findings of this study will assist finance managers in maximizing performance by considering financially sensible heterogeneities such as the sector and the funding source when making financing decisions.

Firm Performance in Ghana: The Role of Infrastructure

Firm Performance in Ghana: The Role of Infrastructure

Impact of Ethical Behavior on Financial Performance of Firms Listed on Ghana Stock Exchange.

The focus of this study was to assess the effect of organizational ethical behavior on the financial performance of firms in Ghana. Researchers have expressed concerns about the ethical behavior of firms in Ghana with regards to its effect on financial performance. The findings of this study will add to the literature, from which those in the field of academia can continually refer. The return on assets, as an indicator for the financial performance of firms, was adopted as the dependent variable. Independent variables were good ethical behavior (GEB), corruption reduction (C), and nepotism reduction (N). A cross-sectional survey design was followed for primary data and firms’ financial records were sources of secondary data. Thirty (30) corporate firms registered on the stock market were selected for the study. A multiple regression analysis was conducted and findings presented in Tables and Figures. Results showed that firms’ adherence to ethical principles of conducting business stand the chance of increasing their financial performance up to 45.0, 38.4, and 43.7 % by unit increases in GEB, and decreases in C, and N respectively. All independent variables had positive correlations with the financial performance of firms studied (GEB, 0.349; C, -0.503; N, -0.680). On firms’ financial performance, the ROA of firms, according to findings is positively and strongly correlated to their adherence to ethical business standards. Based on these findings, the study recommends that corporate firms pay more attention to practices that enhance good ethical behavior through the implementation of ethics policies, and reduce or eradicate nepotism to increase their chances of performing better financially. In addition, firms should ensure gender equality and equity, employee training on ethical standards of work, and encouragement of ethical leadership. Keywords : Ethical behavior, Financial Performance, Organization, Listed companies. DOI: 10.7176/EJBM/13-14-10 Publication date: July 31 st 2021

Working capital management, working capital policy, and firm performance in Ghana : empirical evidence using a dynamic system GMM

Working capital management, working capital policy, and firm performance in Ghana : empirical evidence using a dynamic system GMM

Information Sharing and Supply Chain Collaboration: Strategy for Higher Firm Performance in Ghana

Information sharing (IS) has been considered a vital aspect of supply chain management practices. However, it is inadequate to induce a significant increment in performance, so there is a need for collaboration within the supply chain network arises. This study seeks to determine the position of Information Sharing (IS) practices and Supply Chain Collaboration (SCC) in Firm Performance (FP). The study emphasizes that firms exchange information because of the competitive influence stemming from the business environment. The study administered questionnaires to manufacturing firms in Ghana with 201 respondents, and the structural equation modeling tested the relationship between IS, SCC, and FP. The results indicate that firms with higher levels of IS and SCC witness high-performance rates. Also, supply chain collaboration can have a direct, positive influence on the performance of firms. The study is limited in scope, which lessens the generalization of the results. This study is unique because it simultaneously examines the role of information sharing on both collaboration and firm performance.

Female in top management and firm performance nexus: Empirical evidence from Ghana

This study investigates empirically the link between females in top management and firm performance in Ghana. This study employs the Instrumental Variable (IV) Two Stage Least Squares (2SLS) techni...

Consequences of consumer engagement on the performance of e-commerce firms in Ghana: Moderating effects of consumer-owned resources

We examined the financial consequences of consumer engagement on firms’ performance and how consumer-owned resources moderate the relationship. We collected data on consumer engagement attitudes, consumer-owned resources, and firms’ performance from customers and management of the top online shopping firms in Ghana (male = 52.6% and female = 47.4%). Applying structural equation modelling, we examined the sales and market growth consequences of consumer engagement on firms’ performance and at what levels of consumer-owned resources are the consequences moderated. The findings indicate that behavioural engagement mediates the relationship between psychological engagement and firms’ performance. Satisfied consumers self-reported with positive, fulfilling, and firm-related states of mind that would affect the firms’ financial performance through consumers’ online behavioural activities. Consumer-owned resources moderated the financial effect of consumer engagement on firms’ performance. We conclude from these data that consumer engagement on social networks influences a firm’s performance based on the magnitude of consumer-owned resources.

Assessing the Impact of Relational Governance on the Supply Chain Performances of Manufacturing Firms in Ghana

Over the years, there have been many challenges in supply chain management across the globe especially in the developing countries. There were challenges of quality control, risk management, finding right distributors to handle distribution, fragmented markets and many others. The most challenging issue in the supply chain management is the unpleasant relationship between the firms and their partners leading to many inconsistencies, uncertainties and losses in their operations and transactions leading to the assessment of both the direct and indirect impact of relational governance on supply chain performance of the manufacturing firms in Ghana. The study sought to assess the impact relational governance has directly and indirectly on supply chain performance. Data were collected and gathered through a survey questionnaire responded by 147 manufacturing firms in Ghana. The structural equation modelling was used to test the hypothesis and also validate the results. Findings indicate that the relational governance has a positive effect on supply chain performance and at the same time has an indirect effect on supply chain performance through both information sharing and quality of information. The study provides a hard evidence that the higher levels of information sharing and quality of information can lead to enhanced effect of relational governance on supply chain performance. Keywords - Relational Governance, Information Sharing, Quality of Information, Supply Chain Performance, Manufacturing Firms. DOI: 10.7176/EJBM/12-12-01 Publication date: April 30 th 2020

Examining the factors that influence firm performance in Ghana: a GMM and OLS approach

This research aims to establish the determinants of firm performance in 15 non-financial Ghanaian companies listed on the Ghana Stock Exchange, over a period of 10 years (2008–2017). The analysis is based on two methods of estimation; two-step system generalized method of moments (GMM) and ordinary least square (OLS) method. The new empirical evidence derived from the results of the analysis reveals that firm size (SIZE), growth (GR) and cash flow ratio (CFR), significantly and positively determines firm's performance whereas debt to equity (DE) exerted negative influence on firm performance. Robustness test conducted using the three-stage least-squares regression, indicates similar results with the main findings of the study. These results imply that, firms that rely on debt to execute its operations run at a higher risk of insolvency.

Effect of entrepreneur, firm, and institutional characteristics on small-scale firm performance in Ghana

Small-scale firms are essential contributors to employment generation and growth of many economies. In recognition of their salient role, several policy interventions have been implemented to enhance job creation functions of small-scale firms. This study examined one of these interventions, that is, promotion of small-scale firms in Sunyani municipality of Ghana by analyzing the effect of entrepreneurs, firm, and institutional characteristics on the growth of small-scale firms. A cross-sectional survey was conducted involving 200 small-scale firm operators selected through multi-stage sampling. Both descriptive and inferential analytical tools were used to analyze the data. Descriptive techniques employed included means, frequencies, and cross-tabulations. The inferential analysis included the use of multivariate multiple regression techniques that estimate a single regression model with more than one dependent variable simultaneously. The findings show three types of small-scale enterprises viz. processing (dominated by females), artisans, and service sector (dominated by males) at Sunyani municipality of Ghana. The main findings show that demographic factors (sex of operator, completion of formal education at basic school level or junior high school), institutional variables (bank investment and training services), and firm characteristics (artisan and craft industry type) conjointly and significantly influence small-scale firm performance (number of employees and sales or monthly revenue). Consequent implications for developing economies (such as Ghana) include the need for the introduction of entrepreneurship education at basic level of education in addition to the current practice where entrepreneurship education is mostly limited to tertiary institutions or undergraduate levels, and linking provision of investment services with requisite skills training and backstopping in interventions targeting small-scale firms.

EFFECT OF SOCIAL CAPITAL ON FIRM PERFORMANCE: THE ROLE OF ENTREPRENEURIAL ORIENTATION AND DYNAMIC CAPABILITY

Social capital is a concept that describes good quality social relations that can lead to mutu­al benefits. The social capital theory thrives on relationships in networks to gain access to resources, especially information benefits not available to non-members of the network. The study reports the effects of social capital on firm performance. The study further examines the moderating role of entrepreneurial orientation in the relationship between social capital and firm performance; and the mediating role of dynamic capabilities in the relationship between social capital and firm performance. Using SmartPLS software 3.2.8 to analyze primary data collected from 787 small and medium-sized enterprises (SMEs) operating in Ghana, the results show that social capital has a positive and direct relationship with firm performance in Ghana. The findings suggest that EO moderates the relationship between social capital and firm performance. Again, dynamic capabilities mediate the relationship between social capital and firm performance. The study also provides managers with practical ways of building relationships within their networks for achieving competitive advantage in the current business environment.

The Effect of Exchange Rate Fluctuation on the Performance of Manufacturing Firms: An Empirical Evidence from Ghana

This study examines the effect of exchange rate fluctuations on the performance of manufacturing firms in Ghana for the period 1990 to 2018. The study uses the bounds test approach to cointegration within the framework of autoregressive distributed lags model as the estimation strategy. The results reveal that exchange rate and monetary policy rate has a negative and significant relationship with manufacturing firm performance. It was also found that inflation, trade openness, and investment have significant positive relation with manufacturing firm performance in Ghana. Based on the negative and significant relationship with exchange rate and manufacturing firm performance, it is recommended that government and private partnership should ensure effective management of the exchange rate fluctuation and also encourage manufacturing firms to patronize locally made capital goods for their production in the face of a depreciating exchange rate. Further, the study recommends that monetary authorities should reduce interest rate to increase investment by firms. This will enhance manufacturing firms’ performance.

The moderating role of social network on the relationship between innovative capability and performance in the hotel industry

PurposeA rise in international travel leads to increased competitiveness in the hotel industry. The purpose of this paper is to examine the moderating effect of social networking relationships on the association between innovative capability (IC) and firm performance in Ghana’s hotel industry.Design/methodology/approachData are collected from managers of 200 registered hotels in the northern region of Ghana. Data were collected by means of a structured questionnaire, with variables measured on a seven-point Likert scale.FindingsThe findings reveal a mixture of confirmation for the relationships hypothesized in this study. IC influences the financial as well as the operational performance of hotels and guesthouses in Ghana. Social network relationships have a slight tendency to positively impact on business performance. Network relationships with the community leaders enable hotels to gain knowledge from local communities to build its IC. Social networking with political leaders does not moderate the relationship between IC and performance.Originality/valueThe findings provide empirical support for the viability and performance benefits of developing IC, so as to inform management interventions. It is focused on Sub-Saharan Africa specifically, where managers in the hospitality industry need to find new approaches to develop IC in order to remain competitive. The potential contribution of this study lies in the moderating role that IC plays in the relationship between different types of social networking relationship and performance of hotels.

Influence of ethical behavior on Corporate Governance of firm’s performance in Ghana.

This study aims at analyzing the influence which ethical behavior has on the corporate governance of firm’s performance in Ghana. The existing of ethical issues in business organizations and the general code of conduct which these companies are supposed to follow has brought about the need for researchers to assess their implications to the management of these firms. The findings in this study are essential in acknowledging the impact of ethical behavior on the management of the organization. This study has given us an in-depth understanding of the effects of ethical attributes such as ethical leadership and corporate governance to the overall financial development and performance of firms in Ghana

Customer involvement capability and service firm performance: The mediating role of innovation

This study contributes to the literature on customer involvement by assessing the influence firm-level customer involvement capability has on service firm performance in two economic contexts. The study further examines innovation as a necessary mediator between customer involvement capability and firm performance. Data collected from service firms operating in two countries, the United Kingdom and Ghana, is analysed and used to validate the article's theoretical and empirical contributions. The results show that customer involvement capability has a positive and direct relationship with service firm performance in Ghana but a negative and direct relationship in the British context. The implication is that the effect of firm-level capability can be context-specific and that its development must therefore be aligned with the context in which a firm operates. On the other hand, it was found that in both contexts, innovation (product and process) mediated the relationship between involvement capability and firm performance.