Risk Management and Performance of Listed Banks in Ghana

Eric Dei Ofosu-Hene and Peter Amoh
Additional contact information
Eric Dei Ofosu-Hene: University of Ghana, Accra, Ghana
Peter Amoh: FinRisk Solutions, Accra, Ghana

European Journal of Business Science and Technology, 2016, vol. 2, issue 2, 107-121

Abstract: The objective of the study was in two parts; first, to construct an overall risk index to ascertain risk level of banks listed on Ghana Stock Exchange (GSE), second, to ascertain whether there is a significant relationship between risk management and bank performance. Secondary data of all listed banks on GSE over the period 2007-2014 was used and a panel regression data approach and a risk index were constructed for all listed banks. Findings show that, banks listed on Ghana Stock Exchange have declining risk indexes on average over the latter part of the study period indicating that the Ghanaian Banking Regulator may have to impose additional prudential and regulatory requirements to ensure banks remain solvent. We also find evidence that risk management is positively related to performance of GSE listed banks when the latter is measured from ROE perspective.

Keywords: capital adequacy; risk management; Ghana stock exchange; bank performance; risk index (search for similar items in EconPapers)
JEL-codes: G21 G28 G32 G38 L25 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ejobsat.cz/doi/10.11118/ejobsat.v2i2.46.html (text/html)
http://ejobsat.cz/doi/10.11118/ejobsat.v2i2.46.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:men:journl:v:2:y:2016:i:2:p:107-121

DOI: 10.11118/ejobsat.v2i2.46

Access Statistics for this article

European Journal of Business Science and Technology is currently edited by Svatopluk Kapounek

More articles in European Journal of Business Science and Technology from Mendel University in Brno, Faculty of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ivo Andrle ().