Joshua Abor

Bio: Joshua Abor is an academic researcher from University of Ghana. The author has contributed to research in topics: Corporate governance & Debt. The author has an hindex of 36, co-authored 143 publications receiving 6268 citations. Previous affiliations of Joshua Abor include Stellenbosch University.

The Role of Financial Markets and Institutions in Private Sector Development in Africa

Abstract: The private sector is mostly regarded as an important contributor to Africa's growth. However, the issue of finance has been identified as a major constraint to the development of the sector. This chapter provides a comprehensive review of the private sector in Africa and discusses how Africa's financial sector can make the private sector the engine of growth it is supposed to be. It catalogues the characteristics of Africa's private sector, its contributions to economic development and the challenges it faces. Furthermore, the chapter examines the role of finance in promoting private sector development in Africa and discusses the constraints to extending financial inclusion in Africa. The extant literature suggests the existence of a wide range of conventional and innovative funding sources for the private sector. In particular, innovative funding sources such as remittances, crowdfunding, structured trade finance, private equity and venture capital, green bonds, leasing and factoring, mobile money services and alternative capital markets for small and medium enterprises are advocated.

Do emerging financial markets matter in investment opportunity set? A dynamic panel analysis

Abstract: This paper examined the effect of financial markets on investment growth in emerging markets. Results from a dynamic panel data model show that financial markets largely impact positively on investment growth. The results show that, bank credit to the private sector, bond market capitalization ratio and stock market capitalization ratio all contribute positively to investment growth. Therefore, whilst the stock market provides an equity finance channel for investment growth, the banking sector and bond market provide debt finance mobilized at low cost. The direction of the effect of the stock and bond market variables on one hand and bank credit on the other also point to the fact that the public capital market and banking sector complement each other.

Assessing Competitive Behaviour in Emerging Banking Market: African Evidence

Abstract: Originality/value – This paper provides useful information relevant to policy makers in the banking sector about the nature of bank competitive behaviour in Africa and the drivers behind the competitive behaviour.

Financial freedom, market power and bank margins in sub-Saharan Africa

Abstract: Purpose - This paper examines the effect of financial (banking) freedom and market power on bank net interest margins (NIM). Design/methodology/approach - The study uses data from 11 sub-Saharan African countries over the period, 2006-2012, and the system generalized method of moments to assess how financial freedom affects the relationship between market power and bank NIM. Findings - The authors find that both financial freedom and market power have positive relationships with bank NIM. However, there is some indication that the impact of market power on bank margins is sensitive to the level of financial freedom prevailing in an economy. It appears that as competition intensifies, margins of banks in freer countries are likely to reduce faster than those in areas with more restrictions. Practical implications - Competition policies could be guided by the insight on how financial freedom moderates the effect of market power on bank margins. Originality/value - This study provides new empirical evidence on how the level of financial freedom affects bank margins and the market power-bank margins relationship.

Female-owned businesses and access to finance: evidence from the Ghanaian non-traditional export sector

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

Nudge: Improving Decisions about Health, Wealth, and Happiness

Abstract: NUDGE: IMPROVING DECISIONS ABOUT HEALTH, WEALTH, AND HAPPINESS by Richard H. Thaler and Cass R. Sunstein Penguin Books, 2009, 312 pp, ISBN 978-0-14-311526-7This book is best described formally as a general explanation of and advocacy for libertarian paternalism, a term coined by the authors in earlier publications. Informally, it is about how leaders, systems, organizations, and governments can nudge people to do the things the nudgers want and need done for the betterment of the nudgees, or of society. It is paternalism in the sense that "it is legitimate for choice architects to try to influence people's behavior in order to make their lives longer, healthier, and better", (p. 5) It is libertarian in that "people should be free to do what they like - and to opt out of undesirable arrangements if they want to do so", (p. 5) The built-in possibility of opting out or making a different choice preserves freedom of choice even though people's behavior has been influenced by the nature of the presentation of the information or by the structure of the decisionmaking system. I had never heard of libertarian paternalism before reading this book, and I now find it fascinating.Written for a general audience, this book contains mostly social and behavioral science theory and models, but there is considerable discussion of structure and process that has roots in mathematical and quantitative modeling. One of the main applications of this social system is economic choice in investing, selecting and purchasing products and services, systems of taxes, banking (mortgages, borrowing, savings), and retirement systems. Other quantitative social choice systems discussed include environmental effects, health care plans, gambling, and organ donations. Softer issues that are also subject to a nudge-based approach are marriage, education, eating, drinking, smoking, influence, spread of information, and politics. There is something in this book for everyone.The basis for this libertarian paternalism concept is in the social theory called "science of choice", the study of the design and implementation of influence systems on various kinds of people. The terms Econs and Humans, are used to refer to people with either considerable or little rational decision-making talent, respectively. The various libertarian paternalism concepts and systems presented are tested and compared in light of these two types of people. Two foundational issues that this book has in common with another book, Network of Echoes: Imitation, Innovation and Invisible Leaders, that was also reviewed for this issue of the Journal are that 1 ) there are two modes of thinking (or components of the brain) - an automatic (intuitive) process and a reflective (rational) process and 2) the need for conformity and the desire for imitation are powerful forces in human behavior. …

The Human Side of Enterprise.

Abstract: \"What are your assumptions (implicit as well as explicit) about the most effective way to manage people?\" So began Douglas McGregor in this 1960 management classic. It was a seemingly simple question he asked, yet it led to a fundamental revolution in management. Today, with the rise of the global economy, the information revolution, and the growth of knowledge-driven work, McGregor's simple but provocative question continues to resonate-perhaps more powerfully than ever before. Heralded as one of the most important pieces of management literature ever written, a touchstone for scholars and a handbook for practitioners, The Human Side of Enterprise continues to receive the highest accolades nearly half a century after its initial publication. Influencing such major management gurus such as Peter Drucker and Warren Bennis, McGregor's revolutionary Theory Y-which contends that individuals are self-motivated and self-directed-and Theory X-in which employees must be commanded and controlled-has been widely taught in business schools, industrial relations schools, psychology departments, and professional development seminars for over four decades. In this special annotated edition of the worldwide management classic, Joel Cutcher-Gershenfeld, Senior Research Scientist in MIT's Sloan School of Management and Engineering Systems Division, shows us how today's leaders have successfully incorporated McGregor's methods into modern management styles and practices. The added quotes and commentary bring the content right into today's debates and business models. Now more than ever, the timeless wisdom of Douglas McGregor can light the path towards a management style that nurtures leadership capability, creates effective teams, ensures internal alignment, achieves high performance, and cultivates an authentic, value-driven workplace--lessons we all need to learn as we make our way in this brave new world of the 21st century.