This study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms' return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock Exchange. The study adopted longitudinal explanatory non-experimental research design applied to dynamic panel ARDL framework in analyzing the data. The results revealed that the current asset investment and financing policies have highly significant positive effects on returns to equity holders in the long-run. The empirical evidence suggests that conservative current asset investment policies increase firms return while conservative financing policies yields negative returns. The study therefore would enable finance managers to be able to fashion out the appropriate working capital management policies. A firm pursuing conservative current asset investment policy should balance it with aggressive current asset financing policy in order to enhance profitability and create value for their investors.
This study has sought to determine the effects of working capital management policies on shareholder value creation for six manufacturing firms listed at the Ghana Stock Exchange for the period of 2000-2013. Data were gathered from the annual reports of the firms and the publication of Ghana Stock Exchange. The study employed a longitudinal explanatory non-experimental research design applied to a dynamic panel Autoregressive Distributed Lags methodology framework for analysing the data. The results indicated that conservative current asset investment policies increase economic value added (EVA), whereas aggressive current asset investment policies enhance market-to-book ratio and Tobin?s Q in the long-run. On the other hand, conservative current asset financing policies enhance market-to-book ratio, Tobin?s Q, and EVA in the longrun. Thus, investors discount aggressive current assets? financing policies. A firm pursuing an aggressive current asset investment policy should balance it with a conservative current asset financing policy to create value for its shareholders.
The aim of this study is to examine the short- and the long-run effects of Corporate Social Responsibility (CSR) on the performance of listed Ghanaian banks. An elongated balanced panel design with secondary data of 65 years’ bank observations spanning 2004 to 2016 was used for the study. A cointegration approach – Pooled Mean Group (PMG/Panel ARDL) – was used to examine the short- and the long-term effects of CSR on bank performance while controlling for bank variability, growth in interest income and bank size. The results were mixed. In the short term, it was found that CSR has positive but insignificant effect on bank performance (market-to-book value). In the long-term, however, CSR has significant negative effect on bank performance. Based on the findings, the study concludes that, in the long run, engaging in CSR reduces bank performance. Therefore, CSR needs to be carefully planned and implemented to serve as a boost to bank performance and not just regarded as an inconsequential addendum.
The aim of this study is to examine the short- and the long-run effects of Corporate Social Responsibility (CSR) on the performance of listed Ghanaian banks. An elongated balanced panel design with secondary data of 65 years’ bank observations spanning 2004 to 2016 was used for the study. A co-integration approach – Pooled Mean Group (PMG/Panel ARDL) – was used to examine the short- and the long-term effects of CSR on bank performance while controlling for bank variability, growth in interest income and bank size. The results were mixed. In the short term, it was found that CSR has positive but insignificant effect on bank performance (market-to-book value). In the long-term, however, CSR has significant negative effect on bank performance. Based on the findings, the study concludes that, in the long run, engaging in CSR reduces bank performance. Therefore, CSR needs to be carefully planned and implemented to serve as a boost to bank performance and not just regarded as an inconsequential addendum.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.