scholarly journals OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN SUB-SAHARAN AFRICA

2021 ◽  
pp. 187
Author(s):  
Mayowa Gabriel Ajao ◽  
Jude Osazuwa Ejokehuma
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Critical Mass ◽  
Institutional Ownership ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Government Ownership ◽  
Explanatory Variables ◽  
Integration Test ◽  
Sub Saharan

This study investigates the effect of ownership structure on the financial performance of listed manufacturing firms in three Sub-Saharan Africa countries (Nigeria, Kenya and South–Africa) based on the critical mass indices of their respective bourse. Relevant data from the financial reports of sampled firms were analyzed using the co-integration test and the system-GMM for a period 2010-2019 using Return on Asset, and Tobin-Q as dependent variables while government ownership, block ownership and institutional ownership concentrations were explanatory variables. The empirical results revealed that all the explanatory variables have significant effect on the performance indicators (ROA, TOBIN Q). The result of robustness checks also revealed that both government and institutional ownership concentrations have predominately negative effect on financial performance for the respective countries while block ownership concentration is largely positive for most of the manufacturing firms. The study recommends that policy makers should create favorable policies to encourage balanced investment from all categories of investors and ensure only few owners who have the wherewithal to diversify and attract skills and competencies to improve firm performance. Government should also retain some ownership in foreign and local firms to enhance shareholders’ confidence

Geographical Orientation of Export in Manufacturing Sector in Sub-Sahara Africa

2015 ◽  
Vol 15 (3) ◽  
pp. 337-351
Author(s):  
Didier Yelognisse Alia
Keyword(s):  
Choice Model ◽  
Manufacturing Sector ◽  
Multinomial Logistic Regression ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Sub Saharan ◽  
Multinomial Choice ◽  
Export Decision ◽  
Export Destination

This paper analyses firm’s decision to export and the geographical orientation of manufacturing firms in selected countries in Sub-Saharan Africa. It uses a dataset collected by Rankin, Söderbom, and Teal (2006) on manufacturing firms in Kenya, Ghana, Tanzania Nigeria and South Africa over the period 1991–2004. The paper develops a multinomial choice model of export destination in which profit maximizing firms choose between selling only on domestic market, export only to another African country, and export only outside Africa or export to both destinations. The model is estimated using a multinomial logistic regression. The paper finds evidence of a positive effect of firm size and firm efficiency on export decision and its geographical orientation, especially for the decision to export outside Africa. There is also significant industry, country and time effects in explaining export orientation. Unlike many previous studies, this paper finds that foreign ownership does not substantially determine firm decision to export. Using non-parametric regression, the paper finds that there is a lot of heterogeneity in the relation between the explanatory variables and the propensity to export or to export to various geographical destinations.

scholarly journals Ownership Structure and Commercial Banks Performance: An Empirical Study from Emerging Markets

2021 ◽  
Vol 11 (2) ◽  
pp. 1654-1665
Author(s):  
Mohammad Salem Oudat
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Emerging Market ◽  
Institutional Ownership ◽  
Agency Cost ◽  
Government Ownership ◽  
Independent Variables

The current study seeks to investigate the relationship between ownership structure concentrations and commercial banks financial performance in one of emerging market (Bahrain). The current study employed panel regression analysis from 2015-2019 estimate the relationships between dependent and independent variables. The findings revealed that there is a positive impact of family, government and institutional ownership on financial performance measured by return on equity. Meanwhile, there is negative impact of family and institutional ownership on financial performance measured by earnings per share and a positive relationship with government ownership. The findings confirmed that the corporate governance implementation and a good ownership structure play a vital role in firm’s financial performance through reducing the agency cost. However, the current study suggests for future researches to examine other dependent and independent variables with extension the study duration and tackles other uncovered sectors in this study.

scholarly journals Relationship between ownership structure and financial performance

2017 ◽  
Vol 14 (3) ◽  
pp. 393-398 ◽  
Author(s):  
Ayman Ahmad Abu Haija ◽  
Hussein Mohammed Alrabba
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Negative Relationship ◽  
Market Value ◽  
Institutional Ownership ◽  
Company Performance ◽  
Explanatory Variables ◽  
Research Areas ◽  
The Relationship ◽  
A Company

A firm’s ownership structure is important in gauging its market value, These structures have major impacts on the financial performance of firms in either positive or negative way as demonstrated in previous studies. This study aims to identify the relationship between ownership structure (i.e. family, foreign, managerial and institutional ownership) and Jordanian companies’ financial performance. In doing so, we used a sample consisted of 114 companies listed in ASE from 2009 to 2015 (seven years). Using multiple regression using to test whether there are relationships between ownership structure and firms’ financial performance. The results showed a positive relationship among managerial, institutional and family ownership and financial performance, while there is no significant relationship between foreign ownership and firm’s financial performance. Additionally, the result of the current study has documented that the firm size enhances its financial performance, while the leverage has negative relationship to the company’s financial performance. The implication of these findings is important in many ways, i.e. the existence of ownership forms is vital for a company performance, hence, the prospective investors should consider these forms when investing in companies the results show that R2 value is average which opens up possible research areas in the future to explore new explanatory variables to expand the literature on these issues especially in developing countries.

scholarly journals Hydrological education and training needs in Sub-Saharan Africa: requirements, constraints and progress

2011 ◽  
Vol 8 (6) ◽  
pp. 10565-10587
Author(s):  
D. A. Hughes
Keyword(s):  
Water Resources ◽  
Critical Mass ◽  
Academic Research ◽  
Institutional Support ◽  
Education And Training ◽  
Training Needs ◽  
Sub Saharan Africa ◽  
Sub Saharan ◽  
Hydrology And Water Resources ◽  
And Training

Abstract. This paper represents a perspective on the education and training needs related to hydrology and water resources science within the sub-Saharan Africa region and discusses the requirements of the region, some of the relatively recent developments and initiatives and some of the constraints that exist and remain difficult to surmount. The requirements include the development of academic research capacity and technical skill for both the private and public sector at a variety of levels. Some of the constraints that exist include a lack of adequate funding, lack of follow-up after short training courses, lack of institutional support to continue training, and competition for major water resources development projects from organizations outside the region. One of the main conclusions is that to sustain both educational and practical expertise in hydrology and water resources science within the region there is a need to build a "critical mass" of local expertise. Part of this could be achieved by increasing networking within the region and promoting the sharing of information, tools and expertise. There is also a need to promote institutional support.

scholarly journals The Nexus between Financial Development and Economic Growth: Panel Data Evidence from Developing Countries

2021 ◽  
Vol 14 (10) ◽  
pp. 489
Author(s):  
E. M. Ekanayake ◽  
Ranjini Thaver
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Least Squares ◽  
Financial Development ◽  
Panel Cointegration ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Cointegration Tests ◽  
Sub Saharan

The objective of this study is to investigate the nexus between financial development (FD) in economic growth (GROWTH) in developing countries. The study uses panel data from 138 developing countries during the period 1980–2018. The relationship between financial development and economic growth is investigated using four explanatory variables that are commonly used to measure the level of financial development and several other control variables, including a dummy variable representing the financial and banking crises. The sample of 138 developing countries is also classified into six geographic regions. We have carried out panel unit-root tests and panel cointegration tests before estimating the specified models using both Panel Least Squares (Panel LS) and Panel Fully Modified Least Squares (FMOLS) methods. In addition, panel Granger causality tests have been conducted to identify the direction of causality between FD and GROWTH for each of the regions. The results of the study provide evidence of a direct relationship between FD and GROWTH in developing countries. Furthermore, there is evidence of bi-directional causality running from FD to GROWTH and from GROWTH to FD in samples of Europe and Central Asia, South Asia, and all countries, but not in East Asia and Pacific, Latin America and the Caribbean, Middle East and North Africa, and Sub-Saharan Africa.

Ownership structure and audit quality: the mediating effect of board independence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moncef Guizani ◽  
Gaafar Abdalkrim
Keyword(s):  
Ownership Structure ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Audit Fees ◽  
Mediating Effect ◽  
Board Independence ◽  
Government Ownership ◽  
Content Type ◽  
New Perspective ◽  
The Relationship

Purpose This study aims to examine the mediating effect of board independence on the relationship between ownership structure and audit quality. Design/methodology/approach The research uses generalized methods of moments regression to test the relationship between ownership structure and audit quality. The sample consists of 162 non-financial firms listed on the Gulf Cooperation Council stock markets between the years of 2009 and 2016. To test the significance of the mediating effect, this paper uses the Sobel test. Findings Empirical findings show that companies with higher family ownership are less likely to demand extensive audit services and, as a result, pay lower audit fees. Conversely, this study finds that companies with higher active and passive institutional ownership are more likely to engage high-quality auditors and pay larger audit fees. As for government ownership, it has no significant impact on audit fees. The results also reveal that the negative (positive) effect of family (institutional) ownership on audit quality follows the path through reducing (enhancing) board independence. Further tests are conducted and support the main findings. Practical implications This study has important implications for policymakers and regulators to address the conflict between controlling shareholders and minorities by promoting higher standards of audit quality. The study findings may be useful to investors, assisting them in making better-informed decisions and aids other interested parties in gaining a better understanding of the role played by ownership structure in audit quality. The study also contributes to the strategic board behavior by bringing a new perspective on how boards engage in monitoring by requesting external audit services. This behavior is likely to be influenced by the type of controlling shareholder. Originality/value The main contribution of the present paper is to examine the board composition as a potential mediating variable between ownership structure and audit quality. Moreover, it highlights the issue of improving governance mechanisms.

Languages and National Identity in Sub-Saharan Africa: A Multilevel Approach

2016 ◽  
Author(s):  
Katalin Buzási
Keyword(s):  
Positive Relationship ◽  
Multilevel Models ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Country Level ◽  
National Identification ◽  
Positive Attitudes ◽  
Language Knowledge ◽  
French Colonies ◽  
Sub Saharan

This chapter contributes to the recent strand of the empirical political and economic literature that attempts to reveal the determinants of national identification in Sub-Saharan Africa. Although previous survey-based studies provide evidence that the socio-economic characteristics of individuals, the properties of ethnic groups they belong to, and certain country-level variables influence the probability of having positive attitudes toward the ethnic group or the nation, the role of languages has not been studied in this context yet. Inspired by findings of psycholinguistics and related disciplines, we utilize the fourth round of the Afrobarometer Project (surveyed in 2008 and 2009) to conduct analysis on the possible positive relationship between language knowledge and identification in national versus ethnic terms. We introduce two language-related explanatory variables. First, the Index of Communication Potential (ICP) reflects the probability that an individual can communicate with another randomly selected person within the society relying on commonly spoken languages. Second, we take into account the number of spoken languages in one’s repertoire. The multilevel models show that although speaking more than two languages increases the chance of identifying in national compared to ethnic terms, the ICP is not significant in this sense on the whole sample. But, when we consider the nationality of the former colonizers, the ICP exhibits positive relationship with national identification on the sub-sample of the former French colonies.

scholarly journals Hydrological education and training needs in sub-Saharan Africa: requirements, constraints and progress

2012 ◽  
Vol 16 (3) ◽  
pp. 861-871 ◽  
Author(s):  
D. A. Hughes
Keyword(s):  
Water Resources ◽  
Critical Mass ◽  
Academic Research ◽  
Institutional Support ◽  
Education And Training ◽  
Training Needs ◽  
Sub Saharan Africa ◽  
Sub Saharan ◽  
Hydrology And Water Resources ◽  
And Training

Abstract. This paper represents a perspective on the education and training needs related to hydrology and water resources science within the sub-Saharan Africa region and discusses the requirements of the region, some of the relatively recent developments and initiatives and some of the constraints that exist and remain difficult to surmount. The requirements include the development of academic research capacity and technical skill for both the private and public sector at a variety of levels. Some of the constraints that exist include a lack of adequate funding, lack of follow-up after short training courses, lack of institutional support to continue training, and competition for major water resources development projects from organizations outside the region. One of the main conclusions is that to sustain both educational and practical expertise in hydrology and water resources science within the region there is a need to build a "critical mass" of local expertise. Part of this could be achieved by increasing networking within the region and promoting the sharing of information, tools and expertise. There is also a need to promote institutional support.

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