Charles K.D. Adjasi

The socio‐economic determinants of maternal health care utilization in Ghana

Purpose – The study aims to examine the socio‐economic determinants of maternal health services utilization in Ghana.Design/methodology/approach – Probit and ordered probit models are employed in this study.Findings – The results generally indicate that most women in Ghana undertake the required visits for antenatal services and also take both doses of the tetanus toxoid vaccine as required by World Health Organization. However, the results show low levels of usage in terms of the other maternal health care services (i.e. prenatal care, delivery at a health facility, and postnatal care). There is clearly an urgent need to develop innovative strategies that will help upscale intervention especially for improvement in the use of these services by women in Ghana. The regression results reveal that utilization of maternal health services and intensity of use of antenatal services are influenced by age of mother, type of birth, education of mother, ethnicity, economic status, geographic location, residence, an...

Poverty profile and correlates of poverty in Ghana

Purpose - This papers purpose is to examine the nature and correlates of poverty in Ghana. Design/methodology/approach - Using the most recently published household living standards survey; the paper computes poverty indicators using the Foster Findings - Most households rely on wood fuel, do not have access to tap water and live in rooms rather than full apartments. Expenditure inequality is high and greater in the rural areas compared to the urban areas. Inequality within locations appears to be the main source of national inequality. A household is less likely to be poor if the head is educated, as well as if the household is urban based. Again, households with heads employed in the clerical, sales, services, and agricultural sectors are more likely to be poor compared with those employed in the administrative and managerial sectors. Research limitations/implications - The paper is based on a static analysis of poverty; the absence of a panel household survey makes it difficult to examine the dynamics of poverty. Originality/value - This paper provides a comprehensive and holistic examination of the nature of poverty in Ghana. It looks at poverty within various sectors of an economy by simultaneously examining the issues both from quantitative and qualitative perspectives

Foreign exchange risk exposure of listed companies in Ghana

Purpose - The purpose of this research is to examine the foreign exchange exposure of listed companies on the Ghana Stock Exchange over the period January 1999 to December 2004. The research uses different exchange rate measures namely; the cedi to US dollar, the cedi to UK pound sterling, the cedi to the euro and a trade-weighted exchange rate index to determine the degree of exposure. Design/methodology/approach - The Jorion (1990) two-factor model which regresses the return on a firm against changes in the exchange rate and return on the market is used to estimate the exchange rate exposure for the sample of twenty firms used in this study Findings - About 55 per cent of firms in the sample have a statistically significant exposure to the US dollar whilst 35 per cent are statistically exposed to the UK pound sterling. Sector specific exposure results show that the manufacturing and retail sectors are significantly exposed to the US dollar exchange rate risk. The financial sector did not show any risk exposure to any of the international currencies. The most dominant source of exchange rate risk exposure is the US dollar. Most firms are also negatively exposed to the cedi to US dollar exchange rate changes, implying that the cedi depreciation Originality/value - The study reveals the extent of foreign exchange exposure of firms in Ghana and also adds to the limited body of empirical literature on exchange rate exposure of firms in Africa. Results of this study serve as a useful guide to corporate managers and investors on the degree of foreign exchange exposure and the need to effectively manage firm exposure.

Macroeconomic uncertainty and conditional stock‐price volatility in frontier African markets: Evidence from Ghana

Purpose - The purpose of this paper is to analyse the impact of macroeconomic uncertainty on stock-price volatility in Ghana. Design/methodology/approach - The method of analysis is in two stages. The first stage estimates univariate volatility models for each macroeconomic variable; namely consumer price index (proxy for inflation), exchange rate, money supply, interest rates, oil price, gold price, and cocoa price using the exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model. In the second stage volatility effect of macroeconomic variables on stock prices is estimated using the most recent squared residuals from the mean-conditional variance of macroeconomic variables as exogenous variables in the conditional variance equation of the stock price. Findings - The results show that higher volatility in cocoa prices and interest rates increases volatility of the stock prices, whilst higher volatility in gold prices, oil prices, and money supply reduces volatility of stock prices. Originality/value - This paper departs from previous studies on African markets, by incorporating time-varying volatility characteristics of stock returns and further examining the effect of conditional volatility of macroeconomic variables on the volatility of stock. It also incorporates the effect of external macroeconomic uncertainties from oil and commodity price shocks.

The Internet and Export: Some Cross-Country Evidence from Selected African Countries

This article reports on a study of the effect of Internet use on exports in Africa. A panel data regression approach was adopted with data drawn from secondary sources in selected African countries. A 1 percent increase in Internet use is associated with a 2.2 percent increase in exports, and this is indicative of the importance of the Internet in reducing the cost of exports of African economies. Access to the Internet would increase export through a reduction in the entry and search costs associated with exporting from Africa.

Stock prices and exchange rate dynamics in selected African countries: a bivariate analysis

Purpose - The paper aims to investigate the relationship between stock prices and exchange rate movement in seven African countries. Design/methodology/approach - It uses vector autoregressive (VAR) cointegration and impulse response analysis to determine the long- and short-run linkages between stock prices and exchange rates. Findings - Cointegration analyses indicate a long-run relationship between stock prices and the exchange rate in Tunisia, where exchange rate depreciation drives down stock prices. A short-run error-correction model also shows similar results. Impulse response analyses for other countries show that stock returns in Ghana, Kenya, Mauritius and Nigeria reduce when induced by exchange rate shocks but increase in Egypt and South Africa. Shocks induced by either stock prices or the exchange rate are more protracted in Ghana, Kenya, Mauritius and Nigeria than in South Africa and Egypt. Originality/value - This is one of the few studies on Africa which tests for long-run dynamics and impulse response shock dynamics within a VAR framework. Again unlike other studies it also concentrates on more countries in the sample.

Do Stock Markets Matter in Investment Growth in Africa

The paper investigates the effect of stock market prices on investment growth using dynamic panel data analysis of selected African countries. In line with theoretical expectations investment responds positively to increases in stock prices. Further analysis based on interaction terms reveals that the sensitivity of investment to stock prices increases with stock market development. The paper also finds that even without the inclusion of the most sophisticated market-South Africa, the positive relationship between investment and stock market prices continues to exist in the smaller markets. The findings underscore the importance of stock markets to investment formation in Africa.

Drivers of organizational performance in state owned enterprises

Purpose - This paper examines empirical evidence on factors that influence performance of State Owned enterprises. With a focus on power utilities, the paper investigates how such several factors interact with each other to influence ultimate performance. Design/methodology/approach - Data on the SOEs constituting the sample is predominantly obtained from the audited annual financial statements and other publicized reports of entities for a 20 year period spanning from 1994 - 2013. The audited annual financial statements provide quantitative data whilst the rest of qualitative information is available from narratives in the annual reports. The study takes liquidity, board strength, extent of stakeholder presentation on board and government’s involvement in pricing as proxy variables for resource based, agency, stakeholder and public choice theories respectively. Using performance as the dependent variable, the study variables are modelled in a regression model. Findings - The paper finds that good SOE performance could be explained in terms of the agency and resource based theories, where we found strong boards and good liquidity profiles to be positively related to good performance. A wider stakeholder representation on SOE boards correlates negatively with performance. Similarly, the higher the level of government involvement in the tariff setting process the weaker the performance results. Based on the results, the paper concludes that SOEs performance is underpinned by a plethora of organizational issues: agency, public policy, stakeholder and resource based issues. These issues must therefore inform the appointment of SOE management and also their performance contracts. Practical implications - The study suggests that SOE Governance structures should be centred around four main unifying themes; agency, stakeholders, resources and shareholder engagement. From an agency perspective, board appointments should first be based on merit and stakeholder representation comes in as a subset. Resources availability should be paired with objective imperatives and engagement with political leadership should be limited to matters of policy through a regulatory and legal framework. Originality/value - This study provides some practical insights from both an administration and policy perspective. First, it reveals the importance of and a linkage between both adequate resources and strong boards, but also the need to find the right balance in managing stakeholder interests SOEs face. The study does not necessarily support the popular view of completely eliminating government interference in SOE affairs, but rather advances optimal political influence through regulatory and legal frameworks without giving up ownership rights.

Improving maternal healthcare utilisation in sub‐Saharan Africa through micro‐finance

PURPOSE This paper aims to examine links between womens access to micro-finance and how they use maternal healthcare services in sub-Saharan Africa (SSA). DESIGN/METHODOLOGY/APPROACH The authors use theoretical and empirical literature to propose a framework to sustain and improve womens access to maternal healthcare services through micro-financing. FINDINGS It is found that improved access to micro-finance by women, combined with education may enhance maternal health service uptake. RESEARCH LIMITATIONS/IMPLICATIONS The paper does not consider empirical data in the analysis. The authors advocate empirically testing the framework proposed in other SSA countries. SOCIAL IMPLICATIONS It is important to empower women by facilitating their access to education and micro-finance. This has implications for improving maternal healthcare utilization in SSA. ORIGINALITY/VALUE The paper moves beyond poor access to maternal health services in SSA and proposes a framework for providing sustainable solutions.

What influence dividend decisions of firms in Sub-Saharan African

Purpose – The purpose of this paper is to examine the determinants of the dividend decisions of firms in Sub-Saharan Africa (SSA). Design/methodology/approach – The paper applies a two-step estimation procedure using firm-level panel data for firms in selected SSA countries during the period from 1997 to 2007. In the first step the paper employs a probit model to estimate the parameters of the determinants of the decision to pay or not to pay dividends. In the second step the paper estimates the parameters of the dividend payout and dividend per share models by applying the generalised least squares techniques. Findings – The results provide consistent evidence that dividend decision and its payments are influenced by firm profitability level, investment opportunity sets, taxation, leverage, institutional shareholding and risk. The results affirm the signalling, agency cost and free-cash flow theories of dividend policy. Originality/value – The main value of this paper is identification of factors that in...