 Branch banking variability and rural banks' performance: a GMM approachHaruna Maama and Emmanuel Okofo-Dartey Afro-Asian Journal of Finance and Accounting, 2023, vol. 13, issue 5, 612-628 Abstract: The study employed the resource-based view (RBV) theory to investigate the impact of the number of branches and city branches on the financial performance of rural banks in Ghana. The study used 492 annual reports of 76 rural banks in Ghana for the analysis. Return on capital employed (ROCE), return on equity (ROE) and net interest margin (NIM) were used as proxies for financial performance. A generalised method of moment was employed for the regression analysis. The evidence showed that the number of rural bank branches positively impacted their ROCE and ROE but negatively impacted their NIM. Consistent with the RBV theory, the study further found that the establishment of rural banks in cities positively impacted their performance. The number and location of rural bank branches can impact their financial performance. This study might be the first to empirically test the relationship between branch variability and the performance of banks. Keywords: branch banking; rural banks; resource-based view theory; RBV; bank performance; profitability; Ghana; return on capital employed; ROCE; return on equity; ROE; net interest margin; NIM; generalised methods of moment; GMM. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:afasfa:v:13:y:2023:i:5:p:612-628 Access Statistics for this article More articles in Afro-Asian Journal of Finance and Accounting from Inderscience Enterprises Ltd |
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