International Journal of Finance and Banking Research

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Capital Structure Dynamics of Listed Banks in Ghana

Received: Jun. 20, 2016    Accepted: Jul. 12, 2016    Published: Aug. 22, 2016
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Abstract

The aim of this paper is to provide a comprehensive review on Capital Structure Dynamics of Listed Banks in Ghana. The study examines the determinants of capital structure, the significance of performance on equity and leverage. Seven (7) Banks on the Ghana Stock Exchange were used for the periods 2005 to 2012 The fixed and random effect regression technique was used. The study found Asset Tangibility and Non-debt tax shield to have a positive relationship with equity. The study also discovered that, the size of a bank was a significant determinant of equity and also has a positive association with equity. There was a positive relationship between performance and equity. There was also a negative relation with Growth opportunity of a bank, Dividend policy and equity. Performance and size of a bank are the determinants of leverage. There was a statistically significant positive relation with leverage and a negative statistically significant relation with the size of a bank. The study found Leverage to have positive relationships with Asset Tangibility, Non-debt tax shield and Dividend ratio. The study also discovered a negative association between Growth Opportunity of a bank and Leverage.

DOI 10.11648/j.ijfbr.20160205.12
Published in International Journal of Finance and Banking Research ( Volume 2, Issue 5, October 2016 )
Page(s) 167-177
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

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Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Capital Structure, Equity, Performance, Panel Data, Listed Banks, Ghana

References
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    Anthony Kusi, Joseph Yensu, Kobina Eduful Aggrey. (2016). Capital Structure Dynamics of Listed Banks in Ghana. International Journal of Finance and Banking Research, 2(5), 167-177. https://doi.org/10.11648/j.ijfbr.20160205.12

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    Anthony Kusi; Joseph Yensu; Kobina Eduful Aggrey. Capital Structure Dynamics of Listed Banks in Ghana. Int. J. Finance Bank. Res. 2016, 2(5), 167-177. doi: 10.11648/j.ijfbr.20160205.12

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    AMA Style

    Anthony Kusi, Joseph Yensu, Kobina Eduful Aggrey. Capital Structure Dynamics of Listed Banks in Ghana. Int J Finance Bank Res. 2016;2(5):167-177. doi: 10.11648/j.ijfbr.20160205.12

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  • @article{10.11648/j.ijfbr.20160205.12,
      author = {Anthony Kusi and Joseph Yensu and Kobina Eduful Aggrey},
      title = {Capital Structure Dynamics of Listed Banks in Ghana},
      journal = {International Journal of Finance and Banking Research},
      volume = {2},
      number = {5},
      pages = {167-177},
      doi = {10.11648/j.ijfbr.20160205.12},
      url = {https://doi.org/10.11648/j.ijfbr.20160205.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijfbr.20160205.12},
      abstract = {The aim of this paper is to provide a comprehensive review on Capital Structure Dynamics of Listed Banks in Ghana. The study examines the determinants of capital structure, the significance of performance on equity and leverage. Seven (7) Banks on the Ghana Stock Exchange were used for the periods 2005 to 2012 The fixed and random effect regression technique was used. The study found Asset Tangibility and Non-debt tax shield to have a positive relationship with equity. The study also discovered that, the size of a bank was a significant determinant of equity and also has a positive association with equity. There was a positive relationship between performance and equity. There was also a negative relation with Growth opportunity of a bank, Dividend policy and equity. Performance and size of a bank are the determinants of leverage. There was a statistically significant positive relation with leverage and a negative statistically significant relation with the size of a bank. The study found Leverage to have positive relationships with Asset Tangibility, Non-debt tax shield and Dividend ratio. The study also discovered a negative association between Growth Opportunity of a bank and Leverage.},
     year = {2016}
    }
    

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    AU  - Anthony Kusi
    AU  - Joseph Yensu
    AU  - Kobina Eduful Aggrey
    Y1  - 2016/08/22
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    DO  - 10.11648/j.ijfbr.20160205.12
    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
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    PB  - Science Publishing Group
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    UR  - https://doi.org/10.11648/j.ijfbr.20160205.12
    AB  - The aim of this paper is to provide a comprehensive review on Capital Structure Dynamics of Listed Banks in Ghana. The study examines the determinants of capital structure, the significance of performance on equity and leverage. Seven (7) Banks on the Ghana Stock Exchange were used for the periods 2005 to 2012 The fixed and random effect regression technique was used. The study found Asset Tangibility and Non-debt tax shield to have a positive relationship with equity. The study also discovered that, the size of a bank was a significant determinant of equity and also has a positive association with equity. There was a positive relationship between performance and equity. There was also a negative relation with Growth opportunity of a bank, Dividend policy and equity. Performance and size of a bank are the determinants of leverage. There was a statistically significant positive relation with leverage and a negative statistically significant relation with the size of a bank. The study found Leverage to have positive relationships with Asset Tangibility, Non-debt tax shield and Dividend ratio. The study also discovered a negative association between Growth Opportunity of a bank and Leverage.
    VL  - 2
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Author Information
  • Institute of Entrepreneurship and Enterprise Development, Kumasi Polytechnic, Kumasi, Ghana

  • Institute of Entrepreneurship and Enterprise Development, Kumasi Polytechnic, Kumasi, Ghana

  • Bank of Africa Ghana Limited, Kumasi, Ghana

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