Liquidity and Firms' Financial Performance Nexus
Panel Evidence From Non-Financial Firms Listed on the Ghana Stock Exchange
Bibliographic Data
| ID | 3243062 |
|---|---|
| Authors | Kaodui Li (0000-0001-6914-6639, Jiangsu University, corresponding author), Mohammed Musah (0000-0002-9061-3219, Jiangsu University, corresponding author), Yusheng Kong (0000-0002-7358-6482, Jiangsu University), Isaac Adjei Mensah (0000-0002-2466-7534, Jiangsu University), Stephen Kwadwo Antwi (Jiangsu University), Jonas Bawuah (0000-0001-7700-741X, Jiangsu University), Mary Donkor (0000-0002-9839-5797, Jiangsu University), Cephas Paa Kwasi Coffie (0000-0002-8644-1418, University of Electronic Science and Technology of China), Agyemang Andrew Osei (Jiangsu University) |
| Year | 2020 |
| Volume | 10 |
| Issue | 3 |
| Publication date | 2020-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/2158244020950363 |
| OpenAlex | W3049097270 |
| Language | EN |
| Citations received | 6 |
| References cited | 39 |
The aim of this research was to establish the nexus between liquidity and the viability of quoted non-financial establishments in Ghana. Panel data deduced from the published annual reports of 15 entities for the period 2008 to 2017 was employed for the study. Preliminarily, cross-sectional reliance, unit root, serial correlation, heteroscedasticity, co-integration, and causality tests were respectively performed. Our findings established that there exists no cross-sectional reliance, and input variables are stationary and co-integrated with no presence of heteroscedasticity and serial correlation. Estimates from the random effects generalized least squares (GLS) regression showed that liquidity has significant adverse effect on the firms' Return on Equity (ROE) but had insignificantly positive effect on ROE when surrogated by the cash flow ratio. Finally, test based on causalities uncovered that, with the exception of Current Ratio and ROE that are flanked by bidirectional liaison, no other causal affiliation was evidenced amid other variables. Policy recommendations are further discussed
Business · Econometrics · Economics · Generalized least squares · Heteroscedasticity · Market liquidity · Ordinary least squares · Panel data · Return on equity · Statistics · Stock exchange · Unit root · Corporate Finance and Governance · Financial Reporting and Valuation Research · Working Capital and Financial Performance · Finance
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Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors
A Simple Test for Heteroscedasticity and Random Coefficient Variation
Errors in Variables
Alternative Tests of Independence between Stochastic Regressors and Disturbances
Testing for Granger non-causality in heterogeneous panels
General Diagnostic Tests for Cross Section Dependence in Panels
Unit root tests in panel data
Testing for unit roots in heterogeneous panels
Panel Cointegration
Spurious regression and residual-based tests for cointegration in panel data
Specification Tests in Econometrics
Determinants of Profitability
| Unique citing works | 6 |
|---|---|
| Citations per year | 1,2 |
| Citation span | 2021 - 2026 (6) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 6 |