Business, Management and Accounting
3 years ago

Highly leveraged Ghanaian banks show mixed results in capital structure impact on performance.

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Research Journal of Finance and Accounting
The Effect of Capital Structure on Performance of Banks in Ghana: Evidence from Listed Banks on Ghana Stock Exchange
Joseph Kum, Martin Kwesi Eduafo, Elvis Atta-Saah, Ernestina Konadu

Paper Summary

The study looked at how the way banks in Ghana borrow money affects their performance. They found that the more short-term debt a bank has, the better its performance tends to be. However, having a lot of total debt can actually hurt a bank's performance. This information can help bank managers make better decisions about how to finance their projects.

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