Partial Ordered Logit Analysis of Confidence Levels in Financial Institutions in Ghana. The Case of Asante Mampong Municipality

Abstract

In recent times the financial sector (FS) of Ghana has been saddled with liquidity and operational challenges leading to several financial policies put in place by the Central Bank. The financial crisis and its resultant stringent measures affected public confidence as many customers lost their investments/savings while some financial institutions were consolidated or collapsed. Noting the critical role of public confidence in the financial sector, this paper assessed the confidence levels in FS of Ghana, using Asante Mampong Municipality as a case study. A random sample of 384 respondents was used. Due to the ordinal nature of the dependent variable (confidence levels), the Partial Proportional Odds (PPO) model was used when the ordered logit model failed to pass the proportional odds assumption. About 46.4% of the respondents reported having ‘no confidence’ in the financial institutions of the country, while 37% indicated having ‘somehow confident’ in the sector. Less than 20% of the respondents expressed ‘confident’ (13.3%) or ‘very confident’ (3.4%) in the FS. Duration of engagement with a financial institution, loss of investment, awareness of crisis/reforms of the financial sector and income levels affected the confidence levels in the financial sector. Financial institutions are recommended to strengthen their relationship with customers by providing improved services and policy measures that secure customers investment/savings to ensure sustained and increased levels of confidence.

Does the real estate market behavior predict the trust crisis in the financial sector? The case of the ECB and the Euro

“…Despite a growing body of research exploring the driving forces for trust (Calderón et al, 2002;Roth, 2009;Ennew et al, 2011;Savchenko et al, 2017;Van der Cruijsen et al, 2019;Zandi et al, 2020;Sági et al, 2020;Khadidja, 2020), confidence (Owens, 2012;Gower et al, 2019;Abunyuwah, 2020), sentiment (Dow, 2011;Uygur & Taş, 2014;Yacob et al, 2020) in the financial sector, surprisingly, little attention has been directed to the real estate market behavior that might warn of an impending trust crisis in the financial sector. Therefore, this study is intended to fill the gap in the literature by incorporating the real estate market behavior along with financial sector consumers' feelings to predict trust crises in the financial sector.…”

Partial Proportional Odds Analysis of Consumers’ Packaged Food Safety Precautionary Actions in Nsuta-Mampong, Ghana

“…Abunyuwah and Awuah (2014) estimated and explained the concerns about unwholesomeness of package goods people buy in binary logit framework from consumer perspective. Again, most studies which assess food safety attitudes or practices and or utilise ordinal data often resort to simple correlation, binary or multinomial regression model analysis Aktas et al, 2009;Cunha et al (2017); Dagne et al, 2019;Nayga, 1996) making interpretation general and defect of ordinal quality of the response variable (Abunyuwah, 2020). The current study sets to investigate and explain consumers" actions in market places with respect to safety checks they undertake during purchases as a measure to avoid buying unwholesome package products.…”