Capital Structure of Ghanaian Banks: An Evaluation of Its Impact on Performance
AbstractThe impact of debt structure on financial performance of banks in Ghana remains an important research issue. According to Ghana Banking Survey (2010), the assets of the banks have changed, competition has increased and return on equity has been falling. The present study, therefore, attempts to empirically investigate the impact of debt structure, which is an important component of capital structure, on the profitability of banks listed on the Ghana Stock Exchange, covering the period 2000-2010, using a relatively elongated panel dataset and a robust estimation technique. The study provides an empirical conclusion that listed Ghanaian banks use 80.23% debt and 17.77% equity, and hence the capital structure of Ghanaian banks is hugely skewed towards debt. However, the debt structure of listed Ghanaian banks indicates more than 81% short-term debt and less than 9% long-term debt. Thus, the impact of capital structure on financial performance of Ghanaian listed banks is such that short-term debt positively influences profitability and long-term debt negatively affects profitability.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Bank Management.
Volume (Year): XI (2012)
Issue (Month): 4 (November)
Contact details of provider:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty).
If references are entirely missing, you can add them using this form.