Showing papers by "Joshua Abor published in 2023"
TL;DR: In this paper , the authors investigated how institutional quality conditions energy consumption to influence private capital inflows in Africa using data from 1990 to 2019 and employed a modified dynamic system GMM.
Abstract: This paper investigates how institutional quality conditions energy consumption to influence private capital inflows in Africa using data from 1990 to 2019. The paper employed a modified dynamic system GMM. Our results show that energy consumption has a direct influence on private capital inflows, particularly FDI to Africa. Institutional qualities do not directly influence the effect of energy consumption on FDI but do influence the effect on portfolio investment. However, independently, institutional quality positively motivates FDI inflows into Africa. On the contrary, the reverse analysis showed that private capital inflows do not influence energy consumption in Africa.
TL;DR: In this paper , the effect of pension funds and institutional quality on capital market development in 48 African countries was investigated using a system GMM regression, and it was concluded that IQ may act as a risk management tool.
Abstract: Abstract This study investigates the effect of pension funds (PF) and institutional quality (IQ) on capital market development in 48 African countries. Using a system GMM regression, the study found that the interaction between PF and IQ significantly negatively affects capital market development. The results of the study suggest that PF in Africa contributes positively to overall financial development, and pension fund managers (PFM) seem to be focusing more on other financial market assets than capital markets. It was concluded that IQ may act as a risk management tool. It is therefore recommended that policies on strong IQ should be put in place to enable fund managers to meet their obligations towards the principal (contributor) during retirement. The study recommends that policymakers should integrate the capital markets by ensuring the cross-listing of some of the national exchanges and cross-border investment and also encourage investments in alternative asset classes.
TL;DR: In this article , the authors investigate the moderating role of institutions/governance on the foreign bank presence-financial development nexus, and find evidence that foreign banks in host countries increase financial development in the presence of quality institutions.
TL;DR: In this article , the authors present an empirical evidence on how sustainability ethics affect the relationship between country-level corporate governance and financial stability in developing countries and find that internal and external corporate governance frameworks have a strong positive synergistic effect on financial stability.
Abstract: The study presents an empirical evidence on how sustainability ethics affect the relationship between country-level corporate governance and financial stability in developing countries. Employing the dynamic system Generalized Method of Moments on a panel dataset of 137 developing countries over the period, 2006–2019, the study found that the positive effect of country-level corporate governance framework on financial stability is not instantaneous. We find that internal and external corporate governance frameworks have a strong positive synergistic effect on financial stability. We confirm that corporate governance measures substitute sustainability ethics to yield a desirable outcome of financial stability. Finally, the study finds evidence to support that sustainability ethics reduce the negative impact of country-level corporate governance on financial stability. The study recommends that the build-up of quality sustainability ethics can help tame the reductive effect of the country-level corporate governance framework on financial stability in developing countries.
TL;DR: In this paper , the authors examined the interrelationship between trade environment and oil rents and how both interact to influence financial development, and found that oil rents reduce financial development in 189 economies over the 2004-2020 period.
TL;DR: In this paper , the authors investigated how credit information sharing conditions debt financing to boost the profitability of 20 listed enterprises on the Ghana Stock Exchange between 2003 and 2013 and found that the impact of debt financing on profitability increases when it is subject to information sharing and takes the shape of short, long and total debts.
Abstract: This study investigates how credit information sharing conditions debt financing to boost the profitability of 20 listed enterprises on the Ghana Stock Exchange between 2003 and 2013. We employ robust least squares and simultaneous bootstrapping models in a panel setting. Our findings show that the impact of debt financing on profitability increases when it is subject to information sharing and takes the shape of short, long, and total debts. In the worst-case situation, contingent debt financing reduces the negative impact of debt financing on profitability. Therefore, authorities must adopt laws and legislation that deepen, widen, and strengthen credit information sharing to offset the negative impact of information asymmetry on loan financing and business profitability.
TL;DR: In this paper , the authors examined the impact of central bank regulatory policies on market power in Africa and showed that the individual regulatory policies of the central bank (i.e. monetary and macro-prudential policies) enhance banks' market power.
Abstract: Abstract The paper examines the impact of central bank regulatory policies on market power in Africa. The study presents a representative sample of 52 African economies over the period 2006–2020. The study shows that the individual regulatory policies of the central bank (i.e. monetary and macro-prudential policies) enhance banks’ market power. Also, it reveals that central bank regulatory policies are better coordinated, as complements, in achieving greater market power of banks in countries with strong central bank independence (CBI) framework. However, the coordinated policies are substitutes in determining bank’s market power in countries with weak CBI framework. The policy implication is that the right policy mix of coordinated central bank regulatory policy framework is important in determining an optimal outcome of bank’s market power in both an inclusive central bank (monetary-prudential) policy targeting economies and an independent policy targeting economies.
TL;DR: In this article , the authors examined the joint effect of entrepreneurship and FDI inflows on economic wealth in Africa and concluded that entrepreneurship reduces economic wealth but improves economic wealth when the level of FDI inflow increases in a country.
Abstract: Abstract The paper seeks to examine the joint effect of entrepreneurship and FDI inflows on economic wealth in Africa. It employs a dynamic system GMM for a panel dataset of 52 African economies between 2006 and 2020. The study finds that FDI inflows induced a negative impact on the ease of doing business but it increases the business capital start-ups of entrepreneurs. We find that entrepreneurship reduces economic wealth in the short term but in the long-term entrepreneurship positively affect economic wealth. The results show that FDI inflows increase economic wealth and that FDI is an important channel through which entrepreneurship can impact economic wealth. We find evidence to support that ease of doing business and FDI inflows are substitutes while minimum capital of starting business complements FDI inflows in determining economic wealth. Based on the marginal effects, we conclude that entrepreneurship reduces economic wealth but improves economic wealth when the level of FDI inflows increases in a country. The implication is that countries should provide strategies that promote economic wealth of individuals, people and entrepreneurs through prudent business development framework and FDI supports in the short term.