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This study set out to investigate the role played by human capital development in the nexus between financial inclusion and economic growth in Africa. We use GMM as the estimation technique to analyze country-level data pooled from 40 African countries from 2005 to 2018. The findings suggest the presence of a non-linear U-shaped relationship between financial inclusion and economic growth. It was also found that human capital development fully mediates the relationship between financial inclusion and economic growth in Africa. Hence, the growth-enhancing benefits of financial inclusion are transmitted through human development. Whilst pursuing their financial inclusion targets, efforts should be made by governments across the African continent to simultaneously improve the level of human capital development to realize the positive benefits of financial inclusion. Plain language summary: Providing people with easy access to affordable financial services is seen as one of the surest ways to promote economic prosperity. Whilst some studies have been conducted to test this assertion, their findings are mostly conflicting. We attempt to unravel this puzzle in Africa by arguing that the relationship is both negative and positive depending on the extent to which people have access to financial services. We argue that the possibility that access to finance will promote economic prosperity is dependent on the productive capacity of the people. To empirically test these, we collect archival data across 40 African countries from 2005 to 2018 which we analyzed using the GMM regression technique. We conclude from our findings that, the effect of access to finance on the economy is negative when a large proportion of the population is excluded from the financial system. However, as many more people obtain access to financial services the effect becomes positive. Also, we conclude that access to finance improves overall economic well-being via an enhancement of the productive capacity of the population. Therefore, we recommend that policymakers across the continent speed up their efforts to ensure near-universal access by the adult population to financial services; in that, it is then that the positive benefits on the economy will be guaranteed. Our study did not determine the exact level of access required to transform the effects of access to finance from negative to positive due to data limitations and this can be addressed in future research. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine the effect of corporate social responsibility (CSR) on the performance of ISO 9001‐certified manufacturing firms in Ghana. Specifically, we explore the effect of CSR on the market value and profitability of manufacturing firms in Ghana that have adopted ISO 9001. We use panel data estimation techniques to examine the empirical link between CSR activities and the performance of ISO 9001 certified manufacturing firms. Our panel data was pooled from a total of 65 ISO 9001‐certified manufacturing firms in Ghana observed over 5 years yielding a total of 325 firm‐year observations. Our empirical results show that there is a positive relationship between CSR, market share and profitability of ISO 9001‐certified manufacturing firms. The results are indicative that firms stand to gain if they adopt a more deliberate strategy toward CSR activities. This study provides significant input to the extant literature and offers a comprehensive guide to policy makers and management of ISO 9001‐certified manufacturing firms on CSR engagement in emerging economies like Ghana. [ABSTRACT FROM AUTHOR]

This study examines the determinants of time-varying return volatility of Africa's equity markets using monthly indices of eight top African stock markets. The conditional variance is modelled as a proxy for Africa's volatility indices using the best fitting model among SGARCH, EGARCH and GJR-GARCH. In a bid to account for the dynamic and persistent nature of volatility, the least squares dummy variable bias correction (LSDVC) model is employed. The study finds that volatility of African stock markets follows a dynamic process and is explained by past volatility, domestic exchange rates, Treasury bill rates, money supply, inflation rates, movements in world crude oil prices, volatility of the US and UK stock markets and COVID-19 shocks. The results are largely robust to sub-sample analysis. Further analysis: pre-, during and post-crisis periods (Global Financial Crisis (GFC) and COVID-19 pandemic) reveal that (1) African stock markets became sensitive to advanced market volatility in the period during the GFC and have remained sensitive in the post GFC period and (2) past domestic market return volatility, Treasury bill rates and exchange rates have been the main drivers of stock return volatility during the COVID-19 pandemic in Africa. Additionally, markets in North Africa are revealed as the only African markets immune to advanced market volatility spillovers. These markets may thus provide international diversification opportunities for portfolio managers. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to investigate overconfidence bias and the effect of presidential elections on investor overconfidence bias in sub-Saharan African stock markets. Design/methodology/approach: The study uses the vector autoregressive (VAR) model and its associated impulse response functions to investigate overconfidence bias. Furthermore, we make use of OLS regressions to examine the effect of presidential elections on investor overconfidence bias. Findings: Investor overconfidence bias is present in the markets of Ghana and Tanzania suggesting that the phenomenon persists in sub–Saharan Africa's small markets. We also find that post-presidential election periods have a dampening effect on investor overconfidence in a country where there is less post-election uncertainty. Originality/value: Despite the previous studies on investor overconfidence bias in sub-Saharan Africa, this paper to the best of the authors' knowledge, is the first to investigate investor overconfidence bias in the context of presidential elections. [ABSTRACT FROM AUTHOR]

This century has been full of innovations: new technologies, new products, new services and a plethora of new industries have emerged. Yet the call for innovation in business, especially in financial services, has never been more intense. Although research on this topic exists, there is no empirical evidence regarding the critical factors influencing customer adoption of electronic banking innovation in Ghana's banking industry. The aim of this article is therefore to investigate the factors influencing the adoption of financial innovation in Ghana's banking industry. Surveys were conducted involving 405 clients of the six major banks in the country. Using logistical regression, the results amongst other things show that innovation attributes such as lack of complexity, compatibility and perceived usefulness provided by financial innovation, increase the likelihood of e-banking adoption. In light of these findings, the study recommends that banks should focus on designing both useful and easy-to-use e-banking products that will attract potential and existing customers. [ABSTRACT FROM AUTHOR]