Financial Challenges Facing Urban SMEs under Financial Sector Liberalization in Ghana

The paper examines the impact of financial sector liberalization (FSL) policies on the financial management of small and medium-sized enterprises (SME) in Ghana, using six case studies. Its findings, which confirm and extend the conclusions of previous studies, are integrated into a framework that explains the impact of FSL and the factors at work. The main financial challenge facing SMEs is access to affordable credit over a reasonable period. This is determined by the financing needs of SMEs and the action of investors. SME financing needs reflect their operational requirements, while the action of investors depends on their risk perception and the attractiveness of alternative investment (which affects their willingness to invest). Government borrowing, the general economic climate, availability of collateral, quality of SME record keeping, and SME investor relations skills affect the way in which this challenge is managed. The impact of the activities and potential of enterprise development agencies are also discussed.     

REGIONAL DISPARITIES IN THE PROCESS OF THE DEVELOPMENT OF NIGERIA: A HISTORICAL PERSPECTIVE

This paper examines the policy actions of earlier administrators in Nigeria. The account reveals that regional inequalities in the country evolved during the 100 years of British Colonial Administration. Moreover, activities of various ethno-linguistic groups in the country after political independence undoubtedly exacerbated the situation. The paper concludes that the major structural changes in agriculture, transportation and education initiated by the British during the colonial period: (a) had profound effects on the evolution of regional disparities; and (b) established an important basis for further development of the country. Nonetheless, activities of post-independence administrators have perpetuated and even aggravated the regional and individual socio-economic disparities in the country.     

Involuntary excess reserve and bankers’ remuneration: evidence from Chinese banks

This article analyses the effects of involuntary excess reserves (IER) on bankers’ remuneration and the penalty associated with bank risk-taking if discovered. The study finds that IER help conceal tail risks, improves bankers’ performance and remuneration. However, the risks once discovered result in heavy penalties on bankers’ remuneration. The study extends the agency theory to the context where banks hold large IER.     

E-commerce in Least Developing Countries: Summary Evidence and Implications

ABSTRACT

We undertook a review and classification of research on electronic commerce (e-commerce) in developing countries. We analyzed 181 articles published in a broad range of journals covering e-commerce, global information technology, and development issues. The analysis provides a roadmap that not only indicates the current state of e-commerce for development research but also identifies gaps and priorities for future research. This will be of significant value to both academics and practitioners who are working on, or plan to work on, e-commerce in developing countries.     

Acquirer Characteristics and Method of Payment: Evidence from Chinese Mergers and Acquisitions

This study examines the effects of acquirer characteristics on method of payment of Chinese acquirers on the basis of a sample of 1370 mergers and acquisitions that occurred between 1998 and 2008. Using both buy and hold abnormal returns and calendar time abnormal returns approaches, we find that Chinese acquirers experience pre‐acquisition abnormal returns ranging from 14.29% to 121% over the period of 12–36 months prior to the acquisition relative to three different portfolio benchmarks. In the pre‐bid period, acquisitions financed by shares outperform acquisitions financed by cash. However, in the post‐acquisition period, we document no significant difference between cash‐financed and equity‐financed acquisitions. The study also finds that acquirer market value, Tobin's Q, state ownership and leverage have significant effects on the method of payment. Copyright © 2013 John Wiley & Sons, Ltd.     

Board composition,monitoring and credit risk: evidence from the UK banking industry

This paper examines the effects of board composition and monitoring on the credit risk in the UK banking sector. The study finds CEO duality, pay and board independence to have a positive and significant effect on credit risk of the UK banks. However, board size and women on board have a negative and significant influence on credit risk. Further analysis using sub-samples divided into pre-financial crisis, during the financial crisis and post crisis reinforce the robustness of our findings. Overall, the paper sheds light on the effectiveness of the within-firm monitoring arrangement, particularly, the effects of CEO power and board independence on credit risk decisions thereby contributing to the agency theory.