Empirical Note on Debt Structure and Financial Performance in Ghana

Overview

This book deals extensively with theoretical, empirical, and robust methodology of capital structure in the context of debt structure in the Ghanaian financial sector.

Research Focus

The study investigated the relationship between debt structure and financial performance of financial institutions in Ghana over the period 2002–2011.

Methodology and Findings

Using panel data methodology, it was discovered that there is a significant difference in the capital structure practices of insurance companies and banks. Short-term debts and total debt are negatively significant in determining returns on equity (ROE) and returns on assets (ROA) in the financial institutions of Ghana.