Effect of Capital Adequacy Requirement on Profitability of Selected Banks Listed on Ghana Stock Exchange
| Main Authors: | Amissah, Mark, Oscar Agyemang Opoku |
|---|---|
| Format: | Article info application/pdf Journal |
| Bahasa: | eng |
| Terbitan: |
The Indonesian Institute of Science and Technology Research
, 2023
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| Subjects: | |
| Online Access: |
https://journal.iistr.org/index.php/JMSD/article/view/174 https://journal.iistr.org/index.php/JMSD/article/view/174/171 |
| ctrlnum |
article-174 |
|---|---|
| fullrecord |
<?xml version="1.0"?>
<dc schemaLocation="http://www.openarchives.org/OAI/2.0/oai_dc/ http://www.openarchives.org/OAI/2.0/oai_dc.xsd"><title lang="en-US">Effect of Capital Adequacy Requirement on Profitability of Selected Banks Listed on Ghana Stock Exchange</title><creator>Amissah, Mark</creator><creator>Oscar Agyemang Opoku</creator><subject lang="en-US">Analysis of Variance</subject><subject lang="en-US">Capital Adequacy Ratio</subject><subject lang="en-US">Ghana Stock Exchange</subject><subject lang="en-US">Profitability</subject><subject lang="en-US">Return on Equity</subject><description lang="en-US">The study assessed the effect of capital adequacy requirement on profitability of the Ghana Stock Exchange banks between 2013 and 2018. The analyses were based on the Ghana Stock Exchange secondary statistics. The analyzes specifically assessed trends in the capital adequacy ratios and Ghana Stock Exchange profitability of banks and determine the effect of capital Adequacy Ratio on profitability of listed banks. The study found that the banks' average Capital Adequacy Ratio was (Mean=17.21%) in the time. While the mean Return on Equity (Mean=25.46%) and the mean Return on Asset was found to be (Mean=3.05%). While the profitability was adverse and insignificantly affected by the Capital Adequacy Ratio, they were adverse and small in terms of the Return on Equity, while Capital Adequacy Ratio had a positive and important impact on the Return on Equity. Bank size did not have a major effect on Return on Equity and Return on Asset. For local banks, the mean Capital Adequacy Ratio for international banks was approximately the same. Therefore, the study suggested that businesses continue to operate, if not, to guarantee banks are able to cope with any 'credit crunch' economic recession. Banks can ensure that surplus capital is transformed into investment to maximize investment returns.</description><publisher lang="en-US">The Indonesian Institute of Science and Technology Research</publisher><date>2023-01-13</date><type>Journal:Article</type><type>Other:info:eu-repo/semantics/publishedVersion</type><type>Journal:Article</type><type>File:application/pdf</type><identifier>https://journal.iistr.org/index.php/JMSD/article/view/174</identifier><identifier>10.56741/jmsd.v2i01.174</identifier><source lang="en-US">Journal of Management Studies and Development; Vol. 2 No. 01 (2023): Journal of Management Studies and Development; 13-25</source><source>2962-5467</source><source>2962-5955</source><source>10.56741/jmsd.v2i01</source><language>eng</language><relation>https://journal.iistr.org/index.php/JMSD/article/view/174/171</relation><rights lang="en-US">Copyright (c) 2022 Mark Amissah, Oscar Agyemang Opoku</rights><rights lang="en-US">https://creativecommons.org/licenses/by-sa/4.0</rights><recordID>article-174</recordID></dc>
|
| language |
eng |
| format |
Journal:Article Journal Other:info:eu-repo/semantics/publishedVersion Other File:application/pdf File Journal:Journal |
| author |
Amissah, Mark Oscar Agyemang Opoku |
| title |
Effect of Capital Adequacy Requirement on Profitability of Selected Banks Listed on Ghana Stock Exchange |
| publisher |
The Indonesian Institute of Science and Technology Research |
| publishDate |
2023 |
| topic |
Analysis of Variance Capital Adequacy Ratio Ghana Stock Exchange Profitability Return on Equity |
| url |
https://journal.iistr.org/index.php/JMSD/article/view/174 https://journal.iistr.org/index.php/JMSD/article/view/174/171 |
| contents |
The study assessed the effect of capital adequacy requirement on profitability of the Ghana Stock Exchange banks between 2013 and 2018. The analyses were based on the Ghana Stock Exchange secondary statistics. The analyzes specifically assessed trends in the capital adequacy ratios and Ghana Stock Exchange profitability of banks and determine the effect of capital Adequacy Ratio on profitability of listed banks. The study found that the banks' average Capital Adequacy Ratio was (Mean=17.21%) in the time. While the mean Return on Equity (Mean=25.46%) and the mean Return on Asset was found to be (Mean=3.05%). While the profitability was adverse and insignificantly affected by the Capital Adequacy Ratio, they were adverse and small in terms of the Return on Equity, while Capital Adequacy Ratio had a positive and important impact on the Return on Equity. Bank size did not have a major effect on Return on Equity and Return on Asset. For local banks, the mean Capital Adequacy Ratio for international banks was approximately the same. Therefore, the study suggested that businesses continue to operate, if not, to guarantee banks are able to cope with any 'credit crunch' economic recession. Banks can ensure that surplus capital is transformed into investment to maximize investment returns. |
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Indonesian Institute of Science and Technology Research |
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Indonesian Institute of Science and Technology Research (IISTR) |
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Journal of Management Studies and Development |
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Management Studies Accounting Business Organization Theory |
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KOTA YOGYAKARTA |
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DAERAH ISTIMEWA YOGYAKARTA |
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