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International Journal of Economics and Financial Research

Online ISSN: 2411-9407
Print ISSN: 2413-8533

Quarterly Published (4 Issues Per Year)





Archives

Volume 7 Number 4 December 2021

Determinants of Banks Profitability: Empirical Evidence from Ghana’s Commercial Banking Industry


Authors: Abdul-Hamid Ahmed ; Kouadio Stephane N’Dri
Pages: 175-189
DOI: doi.org/10.32861/ijefr.74.175.189
Abstract
Over the years, Ghana’s commercial banking industry has been bedeviled with numerous challenges.  The unbridled effect of this is the 2018 banking sector megrim which led to the collapse of seven major banks.  This pointed out that it is very crucial to identify and mitigate the factors that negatively affect the performance of the banking sector.  This paper is used to investigate the effect of banks specific variables (BSVs) and macroeconomic variables (MEVs) on the profitability of commercial banks (NIM, ROE, and ROA) in Ghana using FRED annual data of 25 years.  In order to avoid endogeneity problems and aggregation bias, we used the SURE model to run the estimates simultaneously.  The result reveals that profit earned by Ghana’s commercial banks is largely influenced by both internal factors such as KA, AQR, LMGT, MEFFI, and Z-Score and fluctuations in the macroeconomic environment (GDP and FOREX).  The impact of KA, LMGT, MEFFI, and Z-score is significantly positive whereas AQR (NPLs) is found to have a negative effect on banks profitability. GDP has a significant negative impact on Ghana’s commercial bank’s profitability whiles forex induced commercial banks profitability positively, but inflation CPI does not determine the profitability of commercial banks in Ghana.

Relationship between Management Accounting and Business Efficiency - the Intermediate Role of Management Efficiency: A Case Study of Small and Medium Enterprises in the Mekong Delta, Vietnam


Authors: Ho Dinh Phi ; Ngoc Nguyen Bich ; Tung Tran Van ; Minh Bui Quang
Pages: 163-174
DOI: doi.org/10.32861/ijefr.74.163.174
Abstract
Management accounting is a reliable source of information in business activities. However, up to now, there have not been many complete and systematic studies on the factors affecting and the interaction between the implementation of management accounting and the business performance of enterprises. This is a challenging issue for policymakers and business managers. This study, using data from a survey of 370 SMEs in the Mekong Delta, applied the Partial Least Squares-Structural Equation Modeling in the analysis. The research results show that there is a positive linear relationship between management accounting and business efficiency of enterprises through the intermediate factors of management efficiency. Factors affecting the implementation of management accounting include enterprise size, market competition, business owner awareness, and professional qualification of the accounting team.

An Investigation into the Nexus Between Human Development and Carbon Dioxide Emissions: A Global Panel Analysis


Authors: A. Désiré Adom
Pages: 155-162
DOI: doi.org/10.32861/ijefr.74.155.162
Abstract
A fact is that the environment remains an open-ended topic of paramount importance and interest in the literature. This is also true among decision-makers and the average person on “Main Street.” Another fact is that the momentum of human development is ongoing in most parts of the globe with higher wealth creation capabilities, better education and access to it, and better healthcare, all of which translate into a higher life expectancy. In that global context, it becomes a worthwhile endeavor to empirically assess the relationship between human development and pollution in the form of carbon dioxide emissions. Towards this end, the study considers different statistical and econometric methods involving granger-causality, panel vector error correction, and impulse responses. Using a broad panel of 139 countries sourced from the World Bank Group and United Nations Development Programme (UNDP) over the 1995-2018 period, results indicate some key takeaways and a material policy implication. Improvements in human development exacerbate pollution in the short run. However, in the long run, pollution is contained, even lessened, with improvements in human development. This latter outcome could be due to a growing class of environmentally conscious economic agents and decision-makers over time as economies mature. Such results should not constitute grounds for the pursuit of unchecked and incautious policies. To the contrary, all stakeholders should redouble their efforts in either devising or scrupulously implementing greener policies.

Contemporary Indonesian GDP: Context of Analysis at Unemployment, Labor Force and Poor People


Authors: Erwin Kurniawan A. ; Muhammad Awaluddin ; Fitriadi Fitriadi ; Arfiah Busari ; Dio Caisar Darma
Pages: 143-154
DOI: doi.org/10.32861/ijefr.74.143.154
Abstract
Indonesia is a developing country that has always prioritized sustainable development. In achieving these development goals, Indonesia needs to achieve economic growth by improving population welfare and increasing income. With the form of panel data from 34 provinces in Indonesia that have unique characteristics, the author presented them during 2015-2019. Through multiple linear regression, this study seeks to discuss the relationship of unemployment, labor force participation rate, and poor people to Indonesia’s GDP growth. These findings suggest that the three macroeconomic variables have a negative impact on GDP. Regarding GDP growth, only unemployment has an actual effect, while others have no significant effect. The implications of the policies pursued by the government are not only paying attention to economic aspects but social problems that are expected to spur economic development.