The purpose of this paper is to investigate the relationship between three variables; capital structure, ownership structure and corporate governance. Although these issues have been largely researched, less attention has been focused on small and medium enterprises (SMEs). At the time of this study, evidence was not found for a study analyzing all three variables in relation to SMEs, within the context of a developing country. This current study examines the link between capital structure, ownership structure, and corporate governance. Using an appropriate regression model, the study assesses how governance mechanisms and ownership decisions affect the choice of financing SMEs. The results show a positive relationship for all corporate governance variables except for board size. Ownership structure is found to be positive and significantly related to capital structure. The signs indicated by control variables are those which are in consonance with conventional capital structure literature. Generally, ownership and corporate governance are found to affect the financing mix of SMEs in Ghana.
PurposeThe significant impact of innovation in stimulating economic growth cannot be overemphasized, more importantly from policy perspective. For this reason, the relationship between innovation and economic growth in developing economies such as the ones in Africa has remained topical. Yet, innovation as a concept is multi-dimensional and cannot be measured by just one single variable. With hindsight of the traditional measures of innovation in literature, we augment it with the number of scientific journals published in the region to enrich this discourse.Design/methodology/approachWe focus on an approach that explores innovation policy qualitatively from various policy documents of selected countries in the region from three policy perspectives (i.e. institutional framework, financing and diffusion and interaction). We further investigate whether innovation as perceived differently is important for economic growth in 25 economies in sub-Saharan Africa over the period 1990–2016. Instrumental variable estimation of a threshold regression is used to capture the contributions of innovation as a multi-dimensional concept on economic growth, while dealing with endogeneity between the regressors and error term.FindingsThe results from both traditional panel regressions and IV panel threshold regressions show a positive relationship between innovation and economic growth, although the impact seems negligible. Institutional quality dampens innovation among low-regime economies, and the relation is persistent regardless of when the focus is on aggregate or decomposed institutional factors. The impact of innovation on economic growth in most regressions is robust to different dimensions of innovation. Yet, the coefficients of the innovation variables in the two regimes are quite dissimilar. While most countries in the region have offered financial support in the form of budgetary allocations to strengthen institutions, barriers to the design and implementation of innovation policies may be responsible for the sluggish contribution of innovation to the growth pattern of the region.Originality/valueSegregating economies of Africa into two distinct regimes based on a threshold of investment in education as a share of GDP in order to understand the relationship between innovation and economic growth is quite novel. This lends credence to the fact that innovation as a multifaceted concept does not take place by chance – it is carefully planned. We have enriched the discourse of innovation and thus helped in deepening understanding on this contentious subject.
This study explored the implications of taxes on ride-hailing services in a developing economy setting and its effect on the activities of drivers who patronize such services. Using thematic analysis, the study analyzed interview responses from key participants in the ride-hailing services such as the drivers, service operators, and vehicle owners based on the sharing economy perspective. The results indicate that (1) in a broader sense the contribution of the ride-hailing service is characterized with some features such as savings in money and time, ease of stress for both drivers and passengers, and also ease of movement; (2) taxes are needful to ensure sustainable governance but these taxes ought to be equitably charged to all actors within the economy and (3) the Vehicle Income Tax is a cause of financial distress to Uber drivers due to its increasing nature. More importantly, the tax has the potential of eroding profits which makes drivers worse off. This new but genre system of transportation is gaining roots and far advancing within the Ghanaian landscape. Thus, policymakers and industry players must focus on its role within the economy and the benefits therefrom. Equally, there must be more policy initiatives to prevent overburdening the final consumer of ride-hailing services with high taxes and prices. It also suggested that subsequent studies focus on the use of a different methodology within a different or the same setting.
In most developing nations, such as Ghana, SMEs provide a significant portion of the GDP to ensure economic growth, employment, income stability, and poverty alleviation. Despite the aforementioned duties, most of these SMEs are currently failing as a consequence of poor performance. By this, the study investigates accountants’ competence and independence in delivering accounting services to small and medium-sized organisations as a method of sustaining their vitality and allowing them to play the expected crucial roles as the engine of growth in the country’s economic development. The study delivered questionnaires to a sample of eight hundred and seven (807) employees who were selected using the purposive sampling technique from the targeted demographic. The descriptive and inferential quantitative techniques were utilised to investigate the influence of the independent factors on the dependent variable in the Cape Coast Metropolitan Assembly. Descriptive statistics such as frequency and percentages whilst inferential statistics such as correlation and regression were run using SPSS version 23. The results of the study show that competence and independence have a positive and significant effect on how well accounting services are delivered among SMEs in Ghana. The findings of this study may be utilised as a source of reference and beneficial information for researchers, additional studies, and parties who require it to get too concerned concerning accountants’ competence and independence in delivering accountancy services
In line with the natural resource-based view, this paper explores the sustainable business practices (SBPs) of Ghanaian micro, small, and medium enterprises (MSMEs). Qualitatively, the study interviewed eight MSME operators and middle-level managers purposively to assess their use of SBPs and how it affects their businesses. Data collected were edited, coded, and grouped under themes based on the Braun and Clarke thematic framework. The study identified holistic environmental management, eco-preneurship, and regenerative practices as the environmental stewardship drivers among Ghanaian MSMEs. Also, integrated vision and strategy, process efficiency and resource optimization, and risk profiling drive process excellence. Finally, sustainability-focused leadership, internal advocates and change agents, and ongoing education and awareness as drivers for sustainability-oriented culture. The business practices of organizations have continually impacted the immediate environment within which they operate. Consequently, there is a clarion call for businesses to engage in SBPs to mitigate the effect of their operations on the environment. The study brings to bear the SBPs Ghanaian MSMEs are engaged in and how they affect their operations and survival, especially in this era of sustainability.
Manufacturing companies play a crucial role in the economies of most developing countries. Decisions on capital structure portend great importance for businesses vis-à-vis the daunting task of coping with competition within the business landscape. This makes capital structure decisions a reality rather than a myth. Coupled with the daily activities of manufacturing businesses, profitability ensures economic growth and increases in taxes. Profitability is also influenced by the ideal combination of debt and equity. Using descriptive and causal research designs, this study assesses the impact of capital structure on profitability for the period from 2005 to 2019 of listed manufacturing companies in Ghana. Results indicate a significant correlation between capital structure and profitability. The independent variables are found to be inversely related to profitability. Based on these findings, companies may need to minimize the debt component of their capital structure in order to increase profitability.
Environmental Reporting in Ghana: Issues and Determinants 1. Introduction Global environmental changes and its unprecedented impact on human development have shifted the pace of global environmentalism over the last two decades. Whiles individuals continue to develop interests in businesses and their impact on the natural environment, governments, business partners, civil society, have likewise doubled up their watchdog role in ensuring effective corporate environmental citizenship (
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