ghanaopendata/ghanaian-research-english huggingface dataset:
Financial Market Development and Corporate Financing: Evidence from Emerging Market Economies

Purpose – The purpose of this paper is to examine the effects of financial market development on corporate financing of emerging market firms to ascertain whether or not interactions in the financial market has any impact on the available choice of financing of firms. Design/methodology/approach – Panel data covering the period 1990‐2006 for 34 emerging market economies were analyzed within the framework of Pesaran's dynamic fixed effect model and the pooled mean group estimator to capture the short‐ and long‐run effects of the covariates on the endogenous variables. Findings – The findings of the research indicate significantly that the direction and magnitude of the impact of financial market development and macroeconomic variables on capital structure vary with the maturities of the security issue. It is also documented that firm level variables such as profitability, investment opportunity, asset tangibility and risk are equally important in predicting firms' capital structure decisions. The findings also indicate that economy wide variables such as gross domestic product per capita are significant predictors of financing choices of firms. The results of the study generally support existing literature on the impact of financial market development, macroeconomic variables and certain firm level factors on capital structure. Originality/value – The paper considers unique data from emerging market economies over a 17‐year period.

Source: UG
The financial performance of life insurance companies in Ghana

Purpose – The aim of this research is to assess the financial performance of the life insurance industry of an emerging economy. In particular the study delves into the major determinants of the profitability of the life insurance industry of Ghana. The study also examines the relationship among the three measures of insurers' profitability, which are investment income, underwriting profit and the overall (total) net profit. Design/methodology/approach – The annual financial statements of ten life insurance companies covering a period of 11 years (2000-2010) were sampled and analyzed through panel regression. Findings – The findings indicate that whereas gross written premiums have a positive relationship with insurers' sales profitability, its relationship with investment income is a negative one. Also, the results showed that life insurers have been incurring large underwriting losses due to overtrading and price undercutting. The results further revealed a setting-off rather than a complementary relationship between underwriting profit and investment income towards the enhancement of the overall profitability of life insurers. Practical implications – The policy implications of this study for the stakeholders of the life insurance industry are enormous. For instance, insurers must have well-resourced actuary departments to perform price validation of all policies in order to prevent over-trading and price undercutting by insurance marketing agents. In addition, the intention of the NIC to adopt a risk-based approach in its supervision is not only timely but a very significant move that will improve upon the accounting and records keeping standards of the industry as well as the governance and risk management structures of the sector. Social implications – Being too obsessed with premium growth without adequate price validation can lead to self-destruction such as huge underwriting losses. Large underwriting losses can lead to insurance insolvency during periods of cluster claims. Originality/value – This study fulfills an urgent need to investigate the things that are crucial for the survival, growth and profitability of life insurers in an emerging economy. © 2013, © Emerald Group Publishing Limited.

Source: UG
Financial regulation and financial inclusion in Sub-Saharan Africa: Does financial stability play a moderating role?

This study examines the impact of financial regulation on financial inclusion in Sub-Saharan Africa, considering the moderating role of financial stability. By analysing the relationship between financial inclusion and the most prominent macro-prudential regulation (capital adequacy), we find that tightening prudential regulations could negatively impact access to finance, thereby conflicting with Sub-Saharan African economies’ financial inclusion goals. More specifically, the capital adequacy requirement tremendously reduces banks’ capacity to provide financial services and this could lead to credit rationing thereby reducing financial inclusion. The results also indicate that, the interaction of financial regulation with financial stability positively impacts financial inclusion. Thus, financial stability augments financial regulation to have an affirmative impact on financial inclusion. The practical implications of this paper are that, one of the ways central governments and policy makers in Sub-Saharan African countries can increase and get the most out of financial inclusion is to formulate policies targeted at reducing capital adequacy requirements of financial institutions and other constraints that limit the operations and efficiency of financial institutions. Such policies should also aim at creating an enabling environment to promote financial stability.

Source: UG
Financial regulation and financial inclusion in Sub-Saharan Africa: Does financial stability play a moderating role?

This study examines the impact of financial regulation on financial inclusion in Sub-Saharan Africa, considering the moderating role of financial stability. By analysing the relationship between financial inclusion and the most prominent macro-prudential regulation (capital adequacy), we find that tightening prudential regulations could negatively impact access to finance, thereby conflicting with Sub-Saharan African economies’ financial inclusion goals. More specifically, the capital adequacy requirement tremendously reduces banks’ capacity to provide financial services and this could lead to credit rationing thereby reducing financial inclusion. The results also indicate that, the interaction of financial regulation with financial stability positively impacts financial inclusion. Thus, financial stability augments financial regulation to have an affirmative impact on financial inclusion. The practical implications of this paper are that, one of the ways central governments and policy makers in Sub-Saharan African countries can increase and get the most out of financial inclusion is to formulate policies targeted at reducing capital adequacy requirements of financial institutions and other constraints that limit the operations and efficiency of financial institutions. Such policies should also aim at creating an enabling environment to promote financial stability. © 2019 Elsevier B.V.

Source: UG
Financial regulation in Ghana: balancing inclusive growth with financial stability

Following the financial crisis, many countries are beginning to prioritise financial stability through regulation, and seeking to balance such policy priorities with the promotion of inclusive growth, especially in poor countries. Sustained financial sector restructuring and transformation in Ghana has succeeded in creating one of the most vibrant financial services centers in the sub region. Ghana has therefore seen a significant increase in the number of banks, including pan-African groups, with a rapidly expanding deposit base. Currently, Ghana is home to 27 banks, of which 15 are foreign owned and 6 are African banks. However, a number of cross-cutting challenges remain, including access to credit by the private sector and the high cost of credit, which tends to militate against small-scale businesses. While the authorities have continued to work on these challenges, current macroeconomic challenges continue to hamper efforts to lower the cost of credit and to expand access to credit for most small-scale businesses.

Source: UG
Financial sector transparency and bank interest margins: do quality of political and financial regulatory institutions matter?

Purpose – This study aims to examine the effect of private (PRST) and public (PUST) sector-led financial sector transparencies on bank interest margins (BIM) termed as social cost of financial intermediation in different institutional quality setups. Design/methodology/approach – This study uses a two-step dynamic generalized method of moments panel data and bootstrapped quantile models with 91 economies between 2004 and 2016. Data is sourced from World Development Indicator and Global Development Finance databases. Findings – The results show that under strong and weak political and financial regulatory institutional setups, the reducing effect of PRST on BIM are observed and reported while the full sample reports no significant nexus between PRST and PUST on BIM. Furthermore, under political institutional quality sample, economies with strong corruption control and regulatory quality are able to reinforce the dampening effect of PRST on BIM while under the same political institutional quality sample, economies with weak rule of law are able to heighten the reducing effect of PRST on BIM. Moreover, under financial regulator institutional quality sample, economies with strong overall weighted and unweighted, chief executive officer and policy dependent central banks are able to intensify the diminishing effect of PRST on BIM while under the same financial regulator institutional quality sample, economies with weak limits on lending are able to amplify the reducing effect of PRST on BIM. However, PUST is reported to propel lower levels BIM in the bootstrap models, especially in strong institutional economies. Practical implications – These findings imply that policymakers may rely on PRST to reduce BIM, especially under financial regulatory institutional quality. Additionally, economies must be careful on their reliance on PRST because the effectiveness of PRST to tame high BIM is dependent on the strength of political and financial regulatory institutions. Originality/value – To the best of the authors’ knowledge, this study presents first time international evidence on the effect of private and public sector-led financial transparency on BIM in strong and weak political and financial regulatory institution economies.

Source: UG
Financial Sector transparency and net interest margins: Should the private or public Sector lead financial Sector transparency?

This study examines the effect of private and public sector led financial sector transparency on bank interest margins across eighty-six economies. Using a two-step dynamic system generalized method of moments, least square dummy variables, fixed effects and bootstrap quantile panel models between 2005 and 2016, the findings of the two-step GMM are reported as follows. First, results reveal that financial sector transparency whether led by private or public sector reduces interest margins. Second, while no statistical evidence was found on which of the two (private or public sector led transparency) is more effective in dealing with bank interest margins, public sector-led financial transparency is found to be more consistent in reducing bank interest margins across many more economies. Third, the study shows that the effect of financial sector transparency is visible at lower and middle levels of bank interest margins implying that economies with lower and moderately high bank interest margin level can benefit more from policies targeted at improving transparency in the financial sector. These findings imply that the sampled countries must enact policies and laws that deepen and expand financial sector transparency in order to potentially reduce bank interest margins for the good of banking market participants and society at large.

Source: UG
Financial Sector Transparency, Financial Crises And Market Power A Cross-Country Evidence

The study investigates how financial sector transparency moderates the influence of financial crises on bank market power across 75 economies between 2004 and 2014. Using two-step dynamic system, the generalized method of moments the study shows that while public sector-led financial sector transparency reduces bank market power, private sector-led financial sector transparency promotes bank market power, given that private sector-led transparency gives financially sound banks an advantage in solidifying market power and dominance. Similarly, while financial crises reduce the market power of banks, implying that during financial crises, banks lose their market power, financial sector transparency promotes the negative effect of financial crises on bank market power. This implies that during financial crises, financial sector transparency, whether enforced through private or public sector, boosts the weakening effect of financial crises on bank market power. These findings imply that regulators can rely on financial transparency to tame bank market power and enhance banking competitiveness. The findings and results are consistent even when country, time and continental effects are controlled for.

Source: UG
Financial Strain And Resilience: A Qualitative Exploration Of Parental Perspectives On Caring For Children With Sickle Cell Disease In Ghana.

Background: In Ghana, nearly one in four (25%) of the population are sickle cell disease carriers. Furthermore, 2% of all babies born (20 for every 1000 live births) has sickle cell disease. However, little is known about how parents negotiate the financial challenges facing parents of a child with sickle cell disease. This study explores the financial difficulties of parents and children living with sickle cell disease. Methods: The study adopted a qualitative approach. Twenty-seven parents were purposively selected from a sickle cell clinic in Accra, Ghana. Data collection was through an in-depth, face-to-face interview, using an interview guide based on the research objectives, and analyzed using thematic analysis. Result: The findings showed that parents faced multiple financial difficulties (both direct and indirect) as they met the direct cost of medications, routine laboratory investigations, and hospital admissions. The National Health Insurance scheme does not wholly cover these costs. Families also describe more indirect costs, such as those associated with maintaining their child’s well-being alongside those connected to their caring responsibilities, including the impact of giving up work and reducing working hours. Findings highlight the most pressing challenge, including the lack of access to financial support and a more general lack of understanding of the difficulties they faced on the part of policymakers. Conclusion: Supporting sickle cell parents’ financial needs would improve their emotional and social well-being, enabling them to be more effective family carers.

Source: UG
Financial Viability of District Mutual Health Insurance

Healthcare systems in many developing countries do not have enough healthcare providers or healthcare facilities to service their populations. In recent times, nations and groups are setting up health insurance programmes as one way of addressing the myriad of problems that confront healthcare delivery. Develtere et al., discussed the role of mutual health insurance in helping address the situation.1 They drew heavily on the 2003 seminar organised by the Belgian Raiffeisen Foundation, titled Mutual Health In-surance – In Search of Success Factors Learned Through Belgian Field Experience in Developing Countries.2 They concluded that it is best to look at such insurance institu-tions as affording social protection in the health care sec-tor. On financial viability, they argued that it is important for such institutions to find the right balance between individual contributions and refunds to service providers. Building up reserves against “rainy” days is also impor-tant, as is re-insurance.

Source: UG
Financial Viability of District Mutual Health Insurance Schemes of Lawra and Sissala East Districts, Upper West Region, Ghana

Introduction: The National Health Insurance Act, passed in 2003 mandates the National Health Insurance Authority to, in conjunction with the district assemblies establish district mutual health insurance scheme (DMHIS) governed by semi-autonomous boards in all ten regions. Since its implementation, unsubstantiated reports indicate increasing health care and administra-tive costs of the various DMHIS across the country without any corresponding increase in the premium level. We sought to assess the financial viability of the DMHIS in Lawra (LDMHIS) and Sissala East (SEDMHIS) districts, Upper West Region of Ghana. Methods: Cost analysis of revenue and expenditure of LDMHIS and SEDMHIS from 2004 to 2007 was used to estimate the revenue, expenditure, administrative cost, expense, claims and combined ratios. Results: The scheme‟s major sources of revenue were funds from NHIA on behalf of exempted group and the formal sector employees and premium collected from the informal sector. Other sources of revenue were significant at the beginning and became almost negli-gible at the end of 2007. At the end of 2005, adminis-trative cost was higher than medical claims. By the end of 2007, it has reduced to 34.3% and 15.7% of the total expenditure of the SEDMHIS and LDMHIS respec-tively. The combined ratios decreased from 2.27 and 1.17 in 2005 to 0.74 and 0.95 in 2007 for SEDMHIS and LDMHIS respectively. Conclusion: Continuous NHIA support, increasing coverage of the scheme and a corresponding reduction in administrative cost would increase revenue. If this is sustained, the schemes could be financially viable in the long term.

Source: UG
Financing decision, ownership type and financial performance of listed non-financial companies in Ghana

The study aims to investigate the nexus between financing decision, ownership type and financial performance of listed non-financial companies in Ghana. Data were selected from 22 listed non-financial companies on the Ghana Stock Exchange from the years 2010 to 2021. A non-parametric estimation technique called robust OLS (Driscoll-Kraay) was employed to test the variables of interest. Findings indicate that long-term debt funding directly affects ROA, ROE and TQ negatively. Again, total debt funding posits a positive link with ROE and TQ. Moreover, the direct relationship between ownership type, financing decisionsand accounting-based performance measure (ROE) was insignificant but significant with market-based performance measure (TQ). Subsequently, the interaction role propelled ownership (foreign and state) to be significant on the relation between financing decision and financial performance. Largely, foreign-owned companies play a strong positive role on the link between financing decision and financial performance. Further, state ownership negatively affects the association between financing decision and financial performance. The study contributes to knowledge by considering the multiplier effect of ownership type on the relationship between financing decisions and financial performance in Ghana. For policy implication, regulators, specifically of state interest entities, should formulate balanced frameworks for welfare-seeking in public service delivery and performance for sustainability.

Source: UG
Financing Health In Sub-Saharan Africa 1990– 2050: Donor Dependence And Expected Domestic Health Spending.

In 2021, global life expectancy at birth was 74 years whereas in sub-Saharan Africa it was 66 years. Yet in that same year, $92 per person was spent on health in sub- Saharan Africa, which is roughly one fifth of what the next lowest geographic region—North Africa and Middle East—spent ($379). The challenges to healthy lives in sub-Saharan Africa are many while health spending remains low. This study uses gross domestic product, government, and health spending data to give a more complete picture of the patterns of future health spending in sub-Saharan Africa. We analyzed trends in growth in gross domestic product, government health spending, development assistance for health and the prioritization of health in national spending to compare countries within sub-Saharan Africa and globally. We found that while gross domestic product was projected to increase through 2050 in sub Saharan Africa, the share of gross domestic product that goes to health spending is only expected to increase moderately. Our exploration shows that this tepid growth is expected because the percent of overall government spending that is dedicated to health 72% (63– 83) compared to average of 124% (117–132) in other regions) is expected to stay low. Even if the amount, of resources provided from donors climbs some, it is not expected to keep pace with growing economies in sub-Saharan Africa and may transition towards other global public health goods. Critically, development assistance for health provided to sub-Saharan Africa is expected to decrease in some countries, and the expected growth in government health spending might not be enough to cover this expected decline. Increases in spending with a concordant prioritization of health and the appropriate health system governance and structural reforms are critical to ensure that people who live in sub-Saharan Africa are not left behind.

Source: UG
Financing housing in Ghana: challenges to the development of formal mortgage system

Although the factors which influence the development of housing finance systems in developing countries have been identified in the literature, the interconnectedness of these factors has not been adequately examined. This paper employs the systems theory to examine the interrelatedness of the factors that influence the demand and supply of mortgage products in Ghana. The paper shows that as a result of supply and demand constraints, the Ghanaian mortgage market is still largely underdeveloped. Supply constraints include capital inadequacy of the banks, inability of the financial institutions to establish credit worthiness of potential borrowers and unfavourable macro-economic conditions which make investment in long-term loans unattractive to the banks. Demand-side constraints include high house prices, high interest rates, unfavourable terms of loan repayments, low income levels and the cultural belief that it is not good to be in debt. We conclude that given the interconnectedness of these factors, a holistic programme that resonates with systems thinking will be required to develop a well-functioning housing finance system in Ghana. © 2013, Springer Science+Business Media Dordrecht.

Source: UG
Financing housing in Ghana: Challenges to the development of formal mortgage system.

Although the factors which influence the development of housing finance systems in developing countries have been identified in the literature, the interconnectedness of these factors has not been adequately examined. This paper employs the systems theory to examine the interrelatedness of the factors that influence the demand and supply of mortgage products in Ghana. The paper shows that as a result of supply and demand constraints, the Ghanaian mortgage market is still largely underdeveloped. Supply constraints include capital inadequacy of the banks, inability of the financial institutions to establish credit worthiness of potential borrowers and unfavourable macro-economic conditions which make investment in long-term loans unattractive to the banks. Demand-side constraints include high house prices, high interest rates, unfavourable terms of loan repayments, low income levels and the cultural belief that it is not good to be in debt. We conclude that given the interconnectedness of these factors, a holistic programme that resonates with systems thinking will be required to develop a well-functioning housing finance system in Ghana.

Source: UG