Papers by ERIC EFFAH SARKODIE
International journal of finance, Jul 12, 2022
The study assessed the performances of Ghanaian banks in terms of their liquidity, solvency and p... more The study assessed the performances of Ghanaian banks in terms of their liquidity, solvency and profitability by applying financial ratios on the published audited financial statements and further predicted the bankruptcy of the selected banks with the application of Altman Z-model for selected banks in Ghana Stock Exchange. Methodology: Data gathered was analyzed using liquidity, leverage and profitability ratios as well as Altman Z-score. Current ratio and quick ratio were used to assess the liquidity of the banks. Additionally, debt to asset ratio and debt to equity ratio were utilized to find out the solvency of the banks. Whereas, return on assets and return on equity were employed to examine the profitability of the banks. Finally, working capital to assets, retained earnings to assets, earnings before tax to assets and market value of equity to liabilities were the ratios employed to determine the Z-scores. Results: Findings revealed that the liquid positions of the banks were below expectations. As far as the solvency positions of the banks were concerned, findings revealed the sector is highly leveraged. Analysis of the profitability position showed that the banks are fairly profitable as their profit averages were above that of the industry. Again, the Altman Z-score model revealed that all the selected banks except one were in corporate distress and far below the standard ratio to be in safe zone and thus, were likely to declare bankrupt.
American Journal of Economics
Background: In this context of uncertainties and the unknown based on economic, financial, and he... more Background: In this context of uncertainties and the unknown based on economic, financial, and health crises, one of the ways to save companies is the operations of mergers or acquisitions. But not all mergers bring the expected results. An Avalanche of literature has indicated several factors that promote the decision of mergers and acquisitions. Purpose: This paper aimed to investigate the determinants of mergers and acquisitions of listed firms on the Ghana Stock Exchange. Specifically, the study sought to identify and examine the relationship that exists between GDP, Inflation, FDI, Stock Returns, and interest rate on the mergers and acquisitions of listed firms, well as evaluate the failures of mergers and acquisitions in the country. Methodology: The study used an explanatory research design. The population for the study was all mergers and acquisitions between 2010-2018 totaling twenty-five (25). The study used secondary data from Ghana Stock Exchange. Using sample data span...
The Free Dictionary defines entrance examination as examination to determine a candidate's pr... more The Free Dictionary defines entrance examination as examination to determine a candidate's preparation for a course of studies. Moreover, the term College entrance examination may refer to any standardized test which is needed in order for one to be considered eligible for application by a post-secondary (Senior High) institution. Entrance examination is common in many countries such as Australia, Brazil, Burma, Chile, China, France, Germany and United Kingdom. An entrance examination is an examination that many educational institutions use to select students for admission. This examinations may be administered at any level of education, from primary to higher education, although they are more common at higher levels. In West Africa a number of countries use the entrance examination systems: In Nigeria there is Unified Tertiary Matriculation Examination (UTME) and National Common Entrance Examination. In Ghana Entrance examination has become a fundamental means of admitting stud...
Journal of Economics, Management and Trade, 2020
This study examined the economic interaction between liquidity and financial performance of manuf... more This study examined the economic interaction between liquidity and financial performance of manufacturing firms listed on Ghana Stock Exchange (GSE). Specifically, the study sought to examine the relationship between liquidity as measured by current ratio, quick ratio and cash ratio and firms’ financial performance as measured by return as assets, return on equity and return on capital employed and determine the interactive effects on share value of firms. Data extracted from the audited and published annual reports of twenty-one (21) firms for the period 2008 to 2019 was used for the study. The study used correlation analysis for relationship and ANCOVA modeling for interactive effects. The study found that there was a weak positive statistically significant relationship between return on assets and measures of liquidity; there was a weak positive statistically insignificant relationship between return on equity and measures of liquidity; there was a weak negative statistically ins...
The International Journal of Business & Management, 2019
Credit Risk Management of Savings and Loans Companies in Ghana 1. Introductions According to Klie... more Credit Risk Management of Savings and Loans Companies in Ghana 1. Introductions According to Kliestik and Cug (2015) credit risk constitutes the loss probability that a financial institution encounters when a borrower fails to meet his contractual obligation. Largely, financial institutions are the most susceptible when it comes credit risk (Spuchľaková & Cúg, 2014) since it constitutes a significant portion of their operational losses (Klieštik & Cúg, 2015). As indicated by Bartošová (2005)credit risk does not only becomes imminent during loans approval, it equally occurs during other banking transactions such as when trading on the capital market, dealing with foreign exchanges, futures, swaps, bonds, options, stocks, etc. Clearly, this suggests that credit risk constitutes a significant portion of banking activities. Specifically, how the Ghanaian financial institutions operate make their operation more vulnerable to credit risk issues. For instance, for five consecutive years (i.e. 2012-2016) loans and advances have remained as the main source of the industry's operating assets (PwC, 2017). Moreover, most of these financial institutions rely on customers' deposits before they are able to advance credits to their customers for income. For example, recent figures by the regulator confirmed this claim as their statistics revealed that banks total deposits funded 62.5 percent of the industry's assets in December 2017 compared with 63.6 percent in December 2016 (Bank of Ghana, 2018). The consequential effect of this structural arrangement is that banks will have to pay significant amount of interest to their depositors before they acquire their savings. As rightly indicated in the recent Ghana Banking Survey report, interest expense on deposits constituted 75% of total interest expenses of the banking industry (PwC, 2017). This means that Ghanaian financial institutions may require stringent and effective credit risk management practices since they acquire most of their funds from customers' deposits and likewise rely on loans and advances as their major source of income.
Journal of Economics, Management and Trade, 2018
International trade is the exchange of capital, goods, and services across international borders ... more International trade is the exchange of capital, goods, and services across international borders or territories, which could involve the activities of the government and individual. In Africa and Ghana to be specific, it is through international trade that items like automobiles, mobile phones, and other sophisticated machines are acquired. Along the West African belt, trade has been very key in the lives of the individual. However, different languages are used across the West African sub-region. Major amongst these languages are French, English, Twi , Hausa, and Ewe. The success of traders in the sub-region depends greatly on their ability to communicate either in written or oral form one of the aforementioned languages. Due to this barrier traders usually resort to interpreters to aid their trading activities. Meanwhile, these interpreters are not benevolent organizations-they also work at a
Journal of Education, Society and Behavioural Science, 2018
Journal of Economics, Management and Trade, 2019
This study extends the capital-based macroeconomic theory to include international capital flow t... more This study extends the capital-based macroeconomic theory to include international capital flow thus extending it to an open economy and analyze it in the context of the BFH system, Free banking system and 100 per cent reserve ratio. In all these, it was noticed that interest rate would barely change even though the possibility of interest rate changes was not ruled out completely. A test of these systems was conducted on Latvia, Lithuanian, Kazakhstan and Kyrgyzstan and was successful. However, it must be noted that these are just proposition as these systems are not in place at the moment. In furtherance to this, past and present monetary system used by the countries exhibited similarities to these systems, even though difference could largely be seen.
British Journal of Economics, Management & Trade, 2016
A Thesis Submitted to the Department of Economics, Kwame Nkrumah University of Science and Techno... more A Thesis Submitted to the Department of Economics, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the requirements for the degree of Master of Philosophy in Economics, 2014
Business and Economics Journal, 2015
This study finds out the determinants of life insurance demand in the Ayeduase-Kumasi community f... more This study finds out the determinants of life insurance demand in the Ayeduase-Kumasi community from the perspective of consumers. The study adopted Logistic regression modeling technique with 256 cross section observations. Income, higher education, number of dependents, employment by someone else and better perception about insurance firms improved the chances of taking life insurance. Age however, has negative relationship with the odds of taking life insurance. Number of dependents was statistically significant at 1%. Age and Type of employment were both significant at 5% while's income and education level were significant at 10%. Overall the Chi-Square showed that the model was statistically significant at less than 0.001. This study had similar results to previous studies and deviates as well. Çelik and Kayali found a positive relationship between income and odds of taking insurance and that was not different from the results of this study. Contrary to Çelik and Kayali, higher education influences positively the odds of taking life insurance. Moreover, segmenting customers into different groups by using the type of employment as basis of segmentation could help insurance firms to prescribe policies that customers may patronize. Business and Economics Journal B us ines s a n d E cono m ic s Jo urna l
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Papers by ERIC EFFAH SARKODIE