for accounting information quality and tax avoidance. It employs a sample of 119 firms after the ... more for accounting information quality and tax avoidance. It employs a sample of 119 firms after the implementation of IFRS to test for two related hypotheses. First, IFRS reduces the incidence of tax avoidance as the level of earnings quality increases when firms use internal funding to increase their profitability levels. Building on these results, the second test suggests that the relatively high quality earnings and low incidence of tax avoidance among firms in Ghana is attributed to the adoption of IFRS and the interaction of firm size to equity capital and the strategy of firms in Ghana to finance their operations with debt.
This study examines the relationship between corporate tax avoidance (CTA), earnings management (... more This study examines the relationship between corporate tax avoidance (CTA), earnings management (EM) and corporate social responsibility (CSR) within a context of an emerging economy. The study employs system methods of moments (GMM) and logistic regression to establish whether firms in Ghana manage earnings and avoid tax to finance corporate social responsibility. The results show that almost all the firms sampled have engaged in some management of their earnings and tax during the period. The study also find evidence that an increase in CSR activities is associated with an increase in EM, suggesting that, sampled firms may use CSR as a cover for engaging in opportunistic behaviour such as earnings management. By extension, these results have important policy implications for policy makers in assessing the effectiveness of the tax laws.
This article examines the gender composition of corporate boards of listed companies in Ghana. Re... more This article examines the gender composition of corporate boards of listed companies in Ghana. Results indicate that women were insignificantly represented and that younger firms had more women on their boards than firms established four decades ago. In addition, the study found that it is only after the initial listing that companies found it necessary to appoint women directors. As firms expand, they tend to employ fewer women on their corporate boards. Also, women were engaged more in the service and financial sectors than the manufacturing and construction industries. Interestingly, local companies appointed relatively more women as board members than their multinational counterparts.
Increased financial innovation is changing the role of financial markets in the global economy. T... more Increased financial innovation is changing the role of financial markets in the global economy. This research provides a comprehensive literature review on the work done so far on the role financial markets play in building a safe and enduring world, and, on the basis of the review, builds a research framework for assessing the link between finance and sustainable development. The study provides an assemblage of empirical evidence and highlights the burning issues that require the attention of policy makers, researchers, practitioners, global development finance institutions and other stakeholders. The study concludes by elaborating critical research gaps. We find that the majority of the research is concentrated on Financing Sustainability & Responsible Investing and Sustainability & Performance while the sustainability implications of Islamic Finance and the Policy and Regulation dimensions of sustainability have received little attention.
The study examines whether dividend policy influences firm performance in Ghana. The analyses are... more The study examines whether dividend policy influences firm performance in Ghana. The analyses are performed using data derived from the financial statements of listed firms on the GSE during the most recent eight-year period. Ordinary Least Squares model is used to estimate the regression equation. In order to operationalise 'dividend policy'; the study coded: '1' to represent the company has a policy to pay dividend; while '0' to represent the company has a policy not to pay dividends. The results show positive relationships between return on assets, dividend policy, and growth in sales. Surprisingly, study reveals that bigger firms on the GSE perform less with respect to return on assets. The results also reveal negative associations between return on assets and dividend payout ratio, and leverage. The results of the study generally support previous empirical studies. The main value of this study is the identification of how dividend policy affects performance of firms listed on the Ghana Stock exchange.
International journal of comparative management, 2018
This paper analyses the effect of market structure on diversification strategies of the banking i... more This paper analyses the effect of market structure on diversification strategies of the banking industry of Ghana-a growing medium-sized Sub Saharan African country. We draw on a comprehensive panel dataset of 21 Ghanaian banks over a ten-year period. Based on HHI measures of diversification, there is evidence of a gradual shift away from concentration in interest income streams to non-interest income generating activities. The trend in the Lerner index of market power shows that there is very little competition amongst Ghanaian banks. We employ standard panel data econometrics to test if market power influences bank diversification and find that diversification within non-interest income activities increase as banks gain market power.
This thesis focuses on bank market structure and the effect of changes to this structure on inter... more This thesis focuses on bank market structure and the effect of changes to this structure on intermediation strategies using a dataset that covers many regions of the world. Employing different estimation techniques and methodologies, and using a novel approach to each line of research, this thesis provides the following robust results: first, increase banking competition weakens the effectiveness of monetary policy. This is because an increase in the degree of market power increases the response of bank lending to the monetary policy stance. Second, competition increases stability as banks diversify across and within their business activities. Third, the high net-interest margin and relatively low insolvency risk among banks in developing countries could be attributed to a high degree of market power and the use of internal capital financing. v
African journal of accounting, auditing and finance, 2018
This paper examines the effects of corporate governance mechanisms and funding strategy on risk a... more This paper examines the effects of corporate governance mechanisms and funding strategy on risk and returns of banks in Ghana. We employ a panel dataset of banks from 2000 to 2014, to further shed light on funding modes and performance nexus by analysing the complex interaction between corporate governance, funding strategy, and risk and return. The paper establishes among others, a positive and significant relationship between executive compensation and bank returns implying that appropriate compensation to executive members of banks may improve bank performance and reduce bank risk exposure. The overall implication of this result is that improvements in corporate governance practices ensure more transparent method in determining board structure as well as in setting executive compensation for increased bank returns.
International Journal of Critical Accounting, 2017
The agency perspective of tax avoidance suggests a complementary relationship between tax avoidan... more The agency perspective of tax avoidance suggests a complementary relationship between tax avoidance and earnings management. Thus, this paper seeks to evaluate how the firm's financial policy affects the relationship between corporate tax avoidance (CTA) and earnings management (EM) using a sample of 119 firms from emerging and developing countries over a four-year period 2010-2013. We employ system methods of moments (GMM) and find that the financing structure of a firm plays little role on the firm's incentives to engage in avoidance activities and/or manage their earnings. The results imply that monitoring managerial diversionary behaviour by relying on external monitoring mechanism provided by debt holders does not lead to a reduction in EM associated with increased tax avoidance activities.
This paper examines how bank pricing behaviour affects the relationship between financial inclusi... more This paper examines how bank pricing behaviour affects the relationship between financial inclusion and livelihood activities using a sample of households that covers many regions of Ghana. The empirical approach is conducted in two stages: first, we employ a biprobit model to explore the relationship between financial inclusion and individual livelihood activities. Second, we use two-stage least-squares and robust probit methods to assess the effect of inclusive finance on livelihood activities in the light of pricing behaviour of banks. Our results reveal that individual households who have a source of livelihood are motivated to have an account with a bank if they perceive the possibility of having higher income from their accounts. The results also suggest that individuals have a higher chance of earning more income when they are included financially by means of owning accounts, using their accounts to save, having access to credit, and making frequent withdrawals and payments using their accounts.
Increased financial innovation is changing the role of financial markets in the global economy. T... more Increased financial innovation is changing the role of financial markets in the global economy. This research provides a comprehensive literature review on the work done so far on the role financial markets play in building a safe and enduring world, and, on the basis of the review, builds a research framework for assessing the link between finance and sustainable development. The study provides an assemblage of empirical evidence and highlights the burning issues that require the attention of policy makers, researchers, practitioners, global development finance institutions and other stakeholders. The study concludes by elaborating critical research gaps. We find that the majority of the research is concentrated on Financing Sustainability & Responsible Investing and Sustainability & Performance while the sustainability implications of Islamic Finance and the Policy and Regulation dimensions of sustainability have received little attention.
Purpose-The study examines whether bank lending is constrained by monetary policy in Ghana. Desig... more Purpose-The study examines whether bank lending is constrained by monetary policy in Ghana. Design/methodology/approach-The study uses panel cross sectional data covering the period from 1998 to 2004 from the database of Bank of Ghana, ISSER and International Financial Statistics of IMF. The bank loan is represented by freely allocated bank loan which is presumably more sensitive to changes in monetary policy. Changes in money supply and central bank' prime rate is a proxy of monetary policy. Findings-The study reveals that Ghanaian banks lending behaviours are affected significantly by the country's economic activities and changes in money supply. The results of this study also support previous studies that the central bank's prime rate and inflation rate negatively but statistically insignificantly affect banks lending. With the firm level characteristics, the study reveals that bank size and liquidity significantly influence banks' ability to extend credit when demanded. Originality/value-The main value of this study is the identification of the monetary policy factors that influence bank lending behaviour in Ghana.
for accounting information quality and tax avoidance. It employs a sample of 119 firms after the ... more for accounting information quality and tax avoidance. It employs a sample of 119 firms after the implementation of IFRS to test for two related hypotheses. First, IFRS reduces the incidence of tax avoidance as the level of earnings quality increases when firms use internal funding to increase their profitability levels. Building on these results, the second test suggests that the relatively high quality earnings and low incidence of tax avoidance among firms in Ghana is attributed to the adoption of IFRS and the interaction of firm size to equity capital and the strategy of firms in Ghana to finance their operations with debt.
This study examines the relationship between corporate tax avoidance (CTA), earnings management (... more This study examines the relationship between corporate tax avoidance (CTA), earnings management (EM) and corporate social responsibility (CSR) within a context of an emerging economy. The study employs system methods of moments (GMM) and logistic regression to establish whether firms in Ghana manage earnings and avoid tax to finance corporate social responsibility. The results show that almost all the firms sampled have engaged in some management of their earnings and tax during the period. The study also find evidence that an increase in CSR activities is associated with an increase in EM, suggesting that, sampled firms may use CSR as a cover for engaging in opportunistic behaviour such as earnings management. By extension, these results have important policy implications for policy makers in assessing the effectiveness of the tax laws.
This article examines the gender composition of corporate boards of listed companies in Ghana. Re... more This article examines the gender composition of corporate boards of listed companies in Ghana. Results indicate that women were insignificantly represented and that younger firms had more women on their boards than firms established four decades ago. In addition, the study found that it is only after the initial listing that companies found it necessary to appoint women directors. As firms expand, they tend to employ fewer women on their corporate boards. Also, women were engaged more in the service and financial sectors than the manufacturing and construction industries. Interestingly, local companies appointed relatively more women as board members than their multinational counterparts.
Increased financial innovation is changing the role of financial markets in the global economy. T... more Increased financial innovation is changing the role of financial markets in the global economy. This research provides a comprehensive literature review on the work done so far on the role financial markets play in building a safe and enduring world, and, on the basis of the review, builds a research framework for assessing the link between finance and sustainable development. The study provides an assemblage of empirical evidence and highlights the burning issues that require the attention of policy makers, researchers, practitioners, global development finance institutions and other stakeholders. The study concludes by elaborating critical research gaps. We find that the majority of the research is concentrated on Financing Sustainability & Responsible Investing and Sustainability & Performance while the sustainability implications of Islamic Finance and the Policy and Regulation dimensions of sustainability have received little attention.
The study examines whether dividend policy influences firm performance in Ghana. The analyses are... more The study examines whether dividend policy influences firm performance in Ghana. The analyses are performed using data derived from the financial statements of listed firms on the GSE during the most recent eight-year period. Ordinary Least Squares model is used to estimate the regression equation. In order to operationalise 'dividend policy'; the study coded: '1' to represent the company has a policy to pay dividend; while '0' to represent the company has a policy not to pay dividends. The results show positive relationships between return on assets, dividend policy, and growth in sales. Surprisingly, study reveals that bigger firms on the GSE perform less with respect to return on assets. The results also reveal negative associations between return on assets and dividend payout ratio, and leverage. The results of the study generally support previous empirical studies. The main value of this study is the identification of how dividend policy affects performance of firms listed on the Ghana Stock exchange.
International journal of comparative management, 2018
This paper analyses the effect of market structure on diversification strategies of the banking i... more This paper analyses the effect of market structure on diversification strategies of the banking industry of Ghana-a growing medium-sized Sub Saharan African country. We draw on a comprehensive panel dataset of 21 Ghanaian banks over a ten-year period. Based on HHI measures of diversification, there is evidence of a gradual shift away from concentration in interest income streams to non-interest income generating activities. The trend in the Lerner index of market power shows that there is very little competition amongst Ghanaian banks. We employ standard panel data econometrics to test if market power influences bank diversification and find that diversification within non-interest income activities increase as banks gain market power.
This thesis focuses on bank market structure and the effect of changes to this structure on inter... more This thesis focuses on bank market structure and the effect of changes to this structure on intermediation strategies using a dataset that covers many regions of the world. Employing different estimation techniques and methodologies, and using a novel approach to each line of research, this thesis provides the following robust results: first, increase banking competition weakens the effectiveness of monetary policy. This is because an increase in the degree of market power increases the response of bank lending to the monetary policy stance. Second, competition increases stability as banks diversify across and within their business activities. Third, the high net-interest margin and relatively low insolvency risk among banks in developing countries could be attributed to a high degree of market power and the use of internal capital financing. v
African journal of accounting, auditing and finance, 2018
This paper examines the effects of corporate governance mechanisms and funding strategy on risk a... more This paper examines the effects of corporate governance mechanisms and funding strategy on risk and returns of banks in Ghana. We employ a panel dataset of banks from 2000 to 2014, to further shed light on funding modes and performance nexus by analysing the complex interaction between corporate governance, funding strategy, and risk and return. The paper establishes among others, a positive and significant relationship between executive compensation and bank returns implying that appropriate compensation to executive members of banks may improve bank performance and reduce bank risk exposure. The overall implication of this result is that improvements in corporate governance practices ensure more transparent method in determining board structure as well as in setting executive compensation for increased bank returns.
International Journal of Critical Accounting, 2017
The agency perspective of tax avoidance suggests a complementary relationship between tax avoidan... more The agency perspective of tax avoidance suggests a complementary relationship between tax avoidance and earnings management. Thus, this paper seeks to evaluate how the firm's financial policy affects the relationship between corporate tax avoidance (CTA) and earnings management (EM) using a sample of 119 firms from emerging and developing countries over a four-year period 2010-2013. We employ system methods of moments (GMM) and find that the financing structure of a firm plays little role on the firm's incentives to engage in avoidance activities and/or manage their earnings. The results imply that monitoring managerial diversionary behaviour by relying on external monitoring mechanism provided by debt holders does not lead to a reduction in EM associated with increased tax avoidance activities.
This paper examines how bank pricing behaviour affects the relationship between financial inclusi... more This paper examines how bank pricing behaviour affects the relationship between financial inclusion and livelihood activities using a sample of households that covers many regions of Ghana. The empirical approach is conducted in two stages: first, we employ a biprobit model to explore the relationship between financial inclusion and individual livelihood activities. Second, we use two-stage least-squares and robust probit methods to assess the effect of inclusive finance on livelihood activities in the light of pricing behaviour of banks. Our results reveal that individual households who have a source of livelihood are motivated to have an account with a bank if they perceive the possibility of having higher income from their accounts. The results also suggest that individuals have a higher chance of earning more income when they are included financially by means of owning accounts, using their accounts to save, having access to credit, and making frequent withdrawals and payments using their accounts.
Increased financial innovation is changing the role of financial markets in the global economy. T... more Increased financial innovation is changing the role of financial markets in the global economy. This research provides a comprehensive literature review on the work done so far on the role financial markets play in building a safe and enduring world, and, on the basis of the review, builds a research framework for assessing the link between finance and sustainable development. The study provides an assemblage of empirical evidence and highlights the burning issues that require the attention of policy makers, researchers, practitioners, global development finance institutions and other stakeholders. The study concludes by elaborating critical research gaps. We find that the majority of the research is concentrated on Financing Sustainability & Responsible Investing and Sustainability & Performance while the sustainability implications of Islamic Finance and the Policy and Regulation dimensions of sustainability have received little attention.
Purpose-The study examines whether bank lending is constrained by monetary policy in Ghana. Desig... more Purpose-The study examines whether bank lending is constrained by monetary policy in Ghana. Design/methodology/approach-The study uses panel cross sectional data covering the period from 1998 to 2004 from the database of Bank of Ghana, ISSER and International Financial Statistics of IMF. The bank loan is represented by freely allocated bank loan which is presumably more sensitive to changes in monetary policy. Changes in money supply and central bank' prime rate is a proxy of monetary policy. Findings-The study reveals that Ghanaian banks lending behaviours are affected significantly by the country's economic activities and changes in money supply. The results of this study also support previous studies that the central bank's prime rate and inflation rate negatively but statistically insignificantly affect banks lending. With the firm level characteristics, the study reveals that bank size and liquidity significantly influence banks' ability to extend credit when demanded. Originality/value-The main value of this study is the identification of the monetary policy factors that influence bank lending behaviour in Ghana.
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Papers by Mohammed Amidu