Showing papers by "Joshua Abor published in 2006"
TL;DR: In this article, the determinants of dividend payout ratios of listed companies in Ghana were examined using data derived from the financial statements of firms listed on the Ghana Stock Exchange during a six-year period.
Abstract: Purpose – This study seeks to examine the determinants of dividend payout ratios of listed companies in Ghana.Design/methodology/approach – The analyses are performed using data derived from the financial statements of firms listed on the Ghana Stock Exchange during a six‐year period. Ordinary Least Squares model is used to estimate the regression equation. Institutional holding is used as a proxy for agency cost. Growth in sales and market‐to‐book value are also used as proxies for investment opportunities.Findings – The results show positive relationships between dividend payout ratios and profitability, cash flow, and tax. The results also show negative associations between dividend payout and risk, institutional holding, growth and market‐to‐book value. However, the significant variables in the results are profitability, cash flow, sale growth and market‐to‐book value.Originality/value – The main value of this study is the identification of the factors that influence the dividend payout policy decisio...
372 citations
TL;DR: The authors compared the use of external debt finance by male and female-owned small and medium-sized enterprises (SMEs) in Ghana to determine whether female owned firms are less likely to use debt finance.
Abstract: This study compares the use of external debt finance by male-and female-owned small and medium-sized enterprises (SMEs) in Ghana to determine whether female-owned firms are less likely to use debt ...
86 citations
TL;DR: In this article, the authors examined the relationship between agency factors and the capital structure decisions of Small and Medium Enterprises quoted on the Johannesburg Stock Exchange and found that firms with one major institutional blockholder are able to monitor the opportunistic behaviour of management more effectively than those with more than one institutional blockholders.
Abstract: The agency theory suggests that the separation of ownership and control in firms creates conflicts of interest between the firm’s shareholders and managers. This is mainly because managers have the opportunity to use the resources of the firm in ways that benefit themselves personally to the detriment of shareholders’ wealth maximisation. This study examines the relationship between agency factors and the capital structure decisions of Small and Medium Enterprises quoted on the Johannesburg Stock Exchange. The results indicate that firms with one major institutional blockholder are able to monitor the opportunistic behaviour of management more effectively than those with more than one institutional blockholders. Effective monitoring could result in more debt being used by management to increase shareholder value. Also firms with high growth potentials tend to exhibit high debt ratio than those with low growth opportunities. With the exception of the number of institutional blockholders and growth opportun...
27 citations
TL;DR: In this article, the determinants of small and medium-sized exporters' choice of type of finance (formal or informal) were explored and the empirical results revealed a negative relationship between age and formal finance, suggesting that newer firms depend more on formal finance and less on informal finance.
Abstract: The study explored the determinants of small and medium-sized nontraditional exporters' choice of type of finance (formal or informal). The empirical results revealed a negative relationship between age and formal finance, suggesting that newer firms depend more on formal finance and less on informal finance. In addition, the study found positive and significant relationships between formal finance and size and growth of the firm. This suggests that larger and high-growth firms require more funds to finance their expansion and growth opportunities and therefore employ formal finance. Finally, the results of the study also indicated that the proportion of formal finance increases with increasing international activities, suggesting that, as firms engage more in international business, they employ more formal finance and less informal finance. Recommendations are made in this regard.
16 citations
TL;DR: The authors examined the gender composition of corporate boards of listed companies in Ghana and found that women were insignificantly represented and that younger firms had more women on their boards than firms established four decades ago.
Abstract: This article examines the gender composition of corporate boards of listed companies in Ghana. Results indicate that women were insignificantly represented and that younger firms had more women on their boards than firms established four decades ago. In addition the study found that it is only after the initial listing that companies found it necessary to appoint women directors. As firms expand they tend to employ fewer women on their corporate boards. Also women were engaged more in the service and financial sectors than the manufacturing and construction industries. Interestingly local companies appointed relatively more women as board members than their multinational counterparts. (authors)
14 citations
TL;DR: In this paper, the authors explored the link between corporate board characteristics and the capital structure decision of SMEs and found that SMEs with higher percentage of outside directors, highly qualified board members and one-tier board system rather employ more debt.
Abstract: The issue of corporate governance has been a growing area of management research especially among large and listed firms. However, less attention has been paid in the area with respect to Small and Medium Enterprises (SMEs). This current study explores the link between corporate board characteristics the capital structure decision of SMEs. The paper specifically assesses how the adoption of corporate governance structures among Ghanaian SMEs influences their financing decisions by examining the relationship between corporate governance characteristics and capital structure using an appropriate regression model. The results show negative association between capital structure and board size. Positive relationships between capital structure and board composition, board skills, and CEO duality are, however, found. The control variables in the model show signs which are consistent with standard capital structure theories. The results generally suggest that SMEs pursue lower debt policy with larger board size. Interestingly, SMEs with higher percentage of outside directors, highly qualified board members and one-tier board system rather employ more debt. It is clear, from the study, that corporate governance structures influence the financing decisions of Ghanaian SMEs.
9 citations
TL;DR: In this paper, the authors used data from a sample of Ghanaian non-traditional exports (NTEs) to determine differences in obtaining formal finance between male and female-owned firms.
Abstract: This study uses data from a sample of Ghanaian non-traditional exports (NTEs) to determine differences in obtaining formal finance between male and female-owned firms. Findings revealed that there is adverse discrimination in the lending process placing women at a disadvantage. Women are either unfairly denied credit or discouraged in the credit application process with the end result that they are less likely to obtain formal loans. In addition, women do not network as effectively as men. Thus, they do not have the same access to sources of information and capital. Female-owned businesses tend to rely on informal finance sources because of the unwillingness of the formal sector to lend to them. Female-owned clients are also effectively shut out from the formal market due to high collateral requirements and high minimum deposit requirements. There is therefore a high conformity of the results of this study with similar studies in other parts of the world. Recommendations are made in this regard. Gender and Behaviour Vol. 4(1) 2006: 508-521
3 citations
TL;DR: In this article, the role of NEDs among Ghanaian SMEs was investigated and it was shown that relatively larger SMEs are more likely to employ the services of NETs.
Abstract: This paper reports on the role of NEDs among Ghanaian SMEs. The results of this study revealed that less than half of the SMEs sampled engage the services of NED. The study also revealed that relatively larger SMEs are more likely to employ the services of NEDs. We also found that over 80% of the SMEs with NEDs were either growing or growing rapidly. NEDs’ contributions were also found to be multi-various and cut across the range of SME board functions. The study showed that most SMEs acquire NEDs mainly through informal personal contacts such as family, friends of a director, business friends rather than through formal arrangements.
3 citations