Kofi A. Osei

Bio: Kofi A. Osei is an academic researcher from University of Ghana. The author has contributed to research in topics: Stock market & Stock exchange. The author has an hindex of 18, co-authored 43 publications receiving 1169 citations.

The Impact of Corporate Board Meetings on Corporate Performance in South Africa

Abstract: We investigate the impact of corporate board meetings on corporate performance for a sample of 169 listed corporations from 2002 to 2007 in South Africa (SA). Our findings suggest a statistically significant and positive association between the frequency of corporate board meetings and corporate performance, implying that SA boards that meet more frequently tend to generate higher financial performance. A further investigation indicates a significant non-monotonic link between the frequency of corporate board meetings and corporate performance, suggesting that either a relatively small or large number of corporate board meetings impacts positively on corporate performance. Our findings are consistent across a raft of econometric models that control for different types of endogeneities and corporate performance proxies. Our results provide empirical support for agency theory, which suggests that corporate boards that meet more frequently have increased capacity to effectively advise, monitor and discipline management, and thereby improving corporate financial performance.

Outreach and profitability of microfinance institutions: the role of governance

Abstract: Purpose – This paper aims to examine how selected governance indicators impact on performance measures of outreach and profitability in microfinance institutions (MFIs).Design/methodology/approach – The paper adopts a quantitative approach based on both primary and secondary data from conveniently sampled 52 microfinance institutions. A panel data technique is employed as the key analytical framework.Findings – It is shown that governance plays a critical role in the performance of MFIs and that the independence of the board and a clear separation of the positions of a CEO and board chairperson have a positive correlation with both performance measures.Research limitations/implications – It would have been appropriate to have a larger number of MFIs for the study. This limitation however does not compromise on the validity of the conclusions based on the findings of the study.Practical implications – In the context of multi‐dimensional and sometimes conflicting objectives facing MFIs, a clear balancing ac...

Executive Compensation, Corporate Governance and Corporate Performance: A Simultaneous Equation Approach

Abstract: This paper investigates the association between executive compensation and performance. It uniquely utilizes a comprehensive set of corporate governance mechanisms within a three-stage least squares (3SLS) simultaneous equation framework. Results based on estimating a conventional single equation model indicate that the executive pay and performance sensitivity is relatively weak, whereas those based on estimating a 3SLS model generally suggest improved executive pay and performance sensitivity. Our findings highlight the need for future research to control for possible simultaneous interdependencies when estimating the executive pay and performance link. The findings are generally robust across a raft of econometric models that control for different types of endogeneities, executive pay and performance proxies.

The Impact of Corporate Board Meetings on Corporate Performance in South Africa

Abstract: We investigate the impact of corporate board meetings on corporate performance for a sample of 169 listed corporations from 2002 to 2007 in South Africa (SA). Our findings suggest a statistically significant and positive association between the frequency of corporate board meetings and corporate performance, implying that SA boards that meet more frequently tend to generate higher financial performance. A further investigation indicates a significant non-monotonic link between the frequency of corporate board meetings and corporate performance, suggesting that either a relatively small or large number of corporate board meetings impacts positively on corporate performance. Our findings are consistent across a raft of econometric models that control for different types of endogeneities and corporate performance proxies. Our results provide empirical support for agency theory, which suggests that corporate boards that meet more frequently have increased capacity to effectively advise, monitor and discipline management, and thereby improving corporate financial performance.

Analysis of factors affecting the development of an emerging capital market: the case of the Ghana stock market

Abstract: The study looks at the institutional factors affecting the development of the Ghana stock market. Additionally, the study analyses the impact of the listing of Ashanti Goldfields corporation on the development of the Ghana stock market. The study establishes that the institutional factors particularly the legal and regulatory framework that ensure the protection and security of investors are in place, and that the call-over system of transactions is very transparent. The study also finds that the delivery and settlement of transactions are performed satisfactorily by brokers, however the introduction of a centralized clearing system would significantly improve upon the clearing and settlement procedures. The study further establishes that the entry into and exit from the GSE are without any significant restrictions. Analysis of the structure of the GSE shows among others that many of the local investors can be described as low income investors. A sizeable percentage has no formal education and the knowledge of local investors about tbe capital market is quite poor. Foreign investors have come from Europe, America, the Far East etc. With the exception of Nigeria, no foreign investors on the GSE have come from sub-Saharan Africa. Using the law of one price and the random walk test, the study establishes that the GSE is "weak-form" inefficient. Additionally, the study finds that the listing of AGC has had tremendous impact on the GSE in many ways including improving market liquidity and market turnover. The study recommends a campaign to educate the Ghanaian public about the activities of the GSE and to promote investment in general. There is need for the government to give fiscal incentives in the form of taxation in favour of listed companies, and to pursue prudent macroeconomic policies, particularly in the area of inflation management. A regular review of the legal and regulatory framework within which the investment laws operate is necessary to boost the confidence of investors.

Financial resource availability and corporate social responsibility expenditures in a sub-Saharan economy: The institutional difference hypothesis

Abstract: Studies done in developed economies have demonstrated a positive relationship between financial resource availability and CSR. Arguments that we term the Institutional Difference Hypothesis (IDH) drawn from the institutional literature, however, suggest that institutional differences between developed and developing economies are likely to result in different CSR implications. Integrating the logic of IDH with insights from slack resources theory, we argue that there exists a negative relationship between financial resource availability and CSR expenditures for firms in Ghana, a sub-Saharan African emerging economy. We use lagged data from the Ghana Investment Promotion Centre and find that Return on Sales, Return on Equity, and Net Profitability were consistently associated with lower CSR expenditures. We highlight the implications of our findings for research and managers.