PurposeThe purpose of this paper is to evaluate the efficiency of insurance companies in Ghana using a two‐stage procedure to ascertain whether insurance companies are cost efficient and also to examine the efficiency determinants of insurance companies.Design/methodology/approachUsing a cross‐sectional data set of 30 firms over the period 2006‐2008, the study evaluates the efficiency scores by applying a data envelopment analysis that allows the inclusion of multiple inputs and outputs in the production frontier. The study also employs a regression model to identify the key determinants of efficiency of the Ghanaian insurance industry.FindingsThe empirical results in the first stage suggest higher average efficiency scores for life insurance business than non‐life insurance companies. In the second stage, the authors observe that the drive for market share, firm size and the ratio of equity to total invested assets are important determinants of an insurance firm's efficiency.Originality/valueThe findings of this study provide insights into the cost efficiency of insurance companies in Ghana. This has implications for the efficient management of insurance firms in the country.
Purpose
Fraud is a global economic menace which threatens the survival of individuals, firms, industries and economies, and the mobile money service is no exception. This paper aims to explore the main causes of fraud in the mobile money services in Ghana and the measures to combat the menace by the key stakeholders connected to the mobile money services. The paper is motivated by recent reports of numerous fraudulent transactions on the mobile money platform, and the need to clamp down these nefarious transactions with effective and practical measures to sustain the service.
Design/methodology/approach
A thorough review of existing studies on fraud risk relating to mobile money services was done revealing a paucity of literature on the subject. Primary data were gathered using an interview guide to explore the magnitude of the problem based on the views of employees of mobile money operators, mobile money agents, banking supervisors from Bank of Ghana, employees of partnering banks, employees of National Communications Authority and mobile money subscribers.
Findings
The study revealed that fraud in mobile money services is caused by weak internal controls and systems, lack of sophisticated information technology tools to detect the menace, inadequate education and training and the poor remuneration of employees. These factors disrupt the growth, and the smooth-running of the services. To curb this menace, a detailed legal code and internal fraud policy should be developed and used by mobile money operators and partner banks. Adequate training for mobile money agents should be encouraged coupled with public awareness campaigns to educate stakeholders especially the mobile money subscribers on the tricks of the fraudsters.
Research limitations/implications
With the chosen research methodology and limited sample size, the findings may not reflect the views of all the stakeholders connected to the mobile money services. Therefore, future studies on this subject are entreated to use research methods which embrace larger samples to get more details about this menace.
Practical implications
The study will assist in tackling the mobile money fraud to sustain the service in the foreseeable future.
Originality/value
This paper contributes to scanty literature on fraud relating to the mobile money services by drawing lessons from a middle-income country.
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