Dublin Core
Title
The effect of liquidity and capital structure on the financial performance of firms listed on the Ghana Alternative Market (GAX)
Creator
Mohammed Musah, Yusheng Kong
Description
Liquidity and capital structure are fundamental for the survival of all organisations, as such, the management of the two should be accorded a greater attention in every working environment. The purpose of this study was to examine the effect of liquidity and capital structure on the financial performance of firms on the Ghana Alternative Market (GAX), a subsidiary of the Ghana Stock Exchange (GSE). Specifically, the study sought to identify the relationship between liquidity, capital structure and the financial performance of the firms, and to establish the impact of liquidity and capital structure on the firms’ financial performance. This study was a quantitative research that employed the purposive or judgemental sampling technique in selecting its sample. Secondary data sourced from the audited and published annual reports of the HORDS, Intraveneous Infusions, Meridian-Marshalls Holdings and Samba Foods Ltd for the period 2015 to 2018 was used for the study. Financial performance proxied by Return on Capital Employed (ROCE), Return on Assets (ROA) and Return on Issued Capital (ROIC) represented the study’s response variable, whilst liquidity proxied by the Current Ratio (CR) and capital structure proxied by the ratio of Debt-to-Total Assets (DA) served as the study’s explanatory variables. Descriptive, correlation and multiple regression techniques of data analysis were employed for the study. All the data analysis were conducted through the STATA version 15 software package at α= 5%(p≤ 0.05). From the Pearson Product-Moment Correlation Coefficient output, liquidity surrogated by the current ratio had an insignificant relationship …
Date
2019
Source
https://scholar.google.com/citations?view_op=view_citation&hl=en&user=-U-tBVYAAAAJ&cstart=20&pagesize=80&citation_for_view=-U-tBVYAAAAJ:hC7cP41nSMkC
Language
English