Impact of credit risk on corporate financial performance: Evidence from listed banks on the Ghana stock exchange

Oduro, Richard; Asiedu, Michael Amoh; Gadzo, Samuel Gameli

doi:10.5897/jeif2018.0940

Cited by 14 publications

(5 citation statements)

References 27 publications

(26 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The credit risk assessment is a process applied in all banks to evaluate the quality of credit applications and to decide whether a borrower is eligible to get a credit facility to mitigate the credit risk (Richard et al, 2019). Many researchers investigated corporate credit risk assessment and its importance in the banking sector.…”

Section: The Importance Of Corporate Credit Risk Assessmentmentioning

confidence: 99%

Spring Issue

2024

WIJAR

View full text Add to dashboard Cite

Westcliff International Journal of Applied Research (WIJAR) is a multidisciplinary, double-blind peer-reviewed, open access journal pioneered by the faculty at Westcliff University. The journal was founded in 2017 and provides an opportunity for academics, industry professionals, and students to publish innovative research that offers insight into practical implementation. In order to widely disseminate new knowledge and scholarship, WIJAR advocates for all submissions to be written in a style that is accessible/available to a broad audience or readership, including those readers who may not be familiar with either research or the topic studied. The journal aligns with Westcliff University's mission to educate, inspire, and empower individuals through its dedication to supporting authors in the review and revision process to produce the highest quality content possible.

show abstract

Section: The Importance Of Corporate Credit Risk Assessmentmentioning

confidence: 99%

Spring Issue

2024

WIJAR

View full text Add to dashboard Cite

show abstract

“…The general empirical studies on the Ghana Stock Exchange (GSE) have mainly focused on the performance of the listed firms with few emphases on the efficiency of the market and the possible contribution to economic growth. A corporate financial performance review on GSE-listed banks indicates that the bank's internal variables tend to increase profitability (Oduro et al, 2019) while the unlisted banks' financial performance is inverse with the level of leverage (Gadzo and Asiamah, 2018). With regards to market efficiency, the GSE is not efficient due to high transactional cost, low firm participation, and slow market competition (Ayentimi et al, 2013).…”

Section: Emperical Reviewmentioning

confidence: 99%

Assessment of financial system and economic growth: An empirical evidence from Ghanas stock market

Samuel¹

2023

J. Econ. Int. Finance

View full text Add to dashboard Cite

The importance of a country's financial system to its economic well-being cannot be underestimated. This paper seeks to investigate whether causation exists between Ghana's financial system and economic growth. Ghana's financial system was measured using the efficiency, depth, and stability of the stock market, while economic growth was measured as the Gross Domestic Growth (GDP) per capita growth. The measurement variables were purposively sampled from 2008 to 2020, spanning thirteen years of time series data. The granger causality approach was employed to test the financial system's and economic growth's causation. In analysis the data, the study employed the Augmented Fuller Dickey (ADF) and Phillip Perron (PP) to test the stationarity of the series, the Jerque Bera Variable to test the normality of the data and the VAR and Johansen cointegration to test the order of integration among the variables. The statistical test revealed that the variables were not cointegrated at level; there was a unit root in the series. There was no long or short run relationship among the variables. Furthermore, the regressors' depth, efficiency, and stability of the stock market as proxies for the financial system of Ghana do not cause economic growth. It is recommended that regulatory bodies should pursue policies that would improve the effectiveness, efficiency, depth, and stability of other aspects of the country's financial system and focus less on the stock market due to the discovered relationship between the stock market and economic growth.

show abstract

“…While some of them found negative relationships between the variables, others found positive relationships. For instance, Gadzo, Oduro, and Asiedu (2019) examined the influence of credit risk management on the performance of banks listed on the Ghana Stock Exchange. The outcome of that study showed that an inverse relationship existed between bank size, financing gap and credit risk management.…”

Section: Empirical Reviewmentioning

confidence: 99%

Credit risk management and deposit money banks’ profitability in Nigeria: A panel data regression approach

Ebhodaghe,

Monday,

Alaikhue

2023

102

View full text Add to dashboard Cite

This study investigates the impact of credit risk management on DMBs’ profitability in Nigeria using panel data covering a time period of 11 years, from 2009 to 2019. The longitudinal research design was adopted since the data spanned a specific timeframe. Three different models were estimated with ROA, ROE and ROI serving as the dependent variables, while NPL, LLP, BL and BS constituted the independent variables across the three models. The findings of the study showed that both the NPL and BL variables exerted negative impacts on ROA, ROE and ROI across the three models. The LP variable exerted a positive impact on ROA in model one, but showed negative impacts on ROA, ROE and ROI in models two and three. The adjusted R-squared values of 0.17, 0.59 and 0.67 suggest that the explanatory powers of the independent variables are somewhat low. The values of the DW statistics stood at 2.01, 2.23, and 2.11, indicating that the respective estimated models were free from the presence of autocorrelations. Based on these empirical findings, the study concluded that effective CRM strategies are a panacea for enhancing DMBs’ profitability. It is, therefore, strongly recommended that both the regulatory authorities and the top management of the DMBs in Nigeria should, as a matter of urgency and deliberate efforts, introduce appropriate CRM policies that are designed to reduce the already high profiles of NPL and LLP to increase profitability among the DMBs.

show abstract

Impact of credit risk on corporate financial performance: Evidence from listed banks on the Ghana stock exchange

Cited by 14 publications

References 27 publications

Spring Issue

Spring Issue

Assessment of financial system and economic growth: An empirical evidence from Ghanas stock market

Credit risk management and deposit money banks’ profitability in Nigeria: A panel data regression approach

Contact Info

Product

Resources

About