The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs)
AbstractWe use a survey approach to investigate how managers in a frontier market apply financing and dividend decision techniques in practice. 15 firm characteristics were grouped into paired subgroups for a two-sample t-test analysis that generated statistical differences, economic significance le...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2171982 |
| _version_ | 1797770299647721472 |
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| author | Anthony Owusu-Ansah Nene Lartey Addico Godfred Amewu |
| author_facet | Anthony Owusu-Ansah Nene Lartey Addico Godfred Amewu |
| author_sort | Anthony Owusu-Ansah |
| collection | DOAJ |
| description | AbstractWe use a survey approach to investigate how managers in a frontier market apply financing and dividend decision techniques in practice. 15 firm characteristics were grouped into paired subgroups for a two-sample t-test analysis that generated statistical differences, economic significance levels and ranking for each technique investigated. The Ghanaian listed firm’s sample choice was due to the country’s persistent volatile macroeconomic environment. In managing the capital structure, managers consider most relevant issuing of stock to give investors a better impression of their firms’ prospects (signalling). In choosing between short and long-term debt techniques, the most applied technique is matching the firm’s debt maturity with the assets’ useful life span. Managers are most concerned about the volatility of their earnings and cash flows on the appropriate amount of debt to use. A probe into debt policy indicates that the most valuable technique is issuing debt when the firm’s internal funds are inadequate. Under dividend policy, the most treasured technique is ensuring cash availability which deviated from existing literature. These results show that managers in frontier markets are cash-focused, which may lead to short-termism, which may be non-value-adding but important for survival in their persistent liquidity crunch markets. |
| first_indexed | 2024-03-12T21:20:17Z |
| format | Article |
| id | doaj.art-e83cc009da2643a98241cb148fa4548f |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-03-12T21:20:17Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-e83cc009da2643a98241cb148fa4548f2023-07-28T20:55:16ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2171982The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs)Anthony Owusu-Ansah0Nene Lartey Addico1Godfred Amewu2Department of Land Economy, Kwame Nkrumah University of Science and Technology, Kumasi, GhanaDepartment of Accounting and Finance, Business School, Ghana Institute of Management & Public Administration (Gimpa), Accra, GhanaDepartment of Finance, Business School, University of Ghana, Accra, GhanaAbstractWe use a survey approach to investigate how managers in a frontier market apply financing and dividend decision techniques in practice. 15 firm characteristics were grouped into paired subgroups for a two-sample t-test analysis that generated statistical differences, economic significance levels and ranking for each technique investigated. The Ghanaian listed firm’s sample choice was due to the country’s persistent volatile macroeconomic environment. In managing the capital structure, managers consider most relevant issuing of stock to give investors a better impression of their firms’ prospects (signalling). In choosing between short and long-term debt techniques, the most applied technique is matching the firm’s debt maturity with the assets’ useful life span. Managers are most concerned about the volatility of their earnings and cash flows on the appropriate amount of debt to use. A probe into debt policy indicates that the most valuable technique is issuing debt when the firm’s internal funds are inadequate. Under dividend policy, the most treasured technique is ensuring cash availability which deviated from existing literature. These results show that managers in frontier markets are cash-focused, which may lead to short-termism, which may be non-value-adding but important for survival in their persistent liquidity crunch markets.https://www.tandfonline.com/doi/10.1080/23311975.2023.2171982CFOssurveycapital structuredividend policyfinancing decisiondebt policy |
| spellingShingle | Anthony Owusu-Ansah Nene Lartey Addico Godfred Amewu The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs) Cogent Business & Management CFOs survey capital structure dividend policy financing decision debt policy |
| title | The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs) |
| title_full | The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs) |
| title_fullStr | The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs) |
| title_full_unstemmed | The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs) |
| title_short | The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs) |
| title_sort | application of financing and dividend decision techniques in practice among ghanaian chief financial officers cfos |
| topic | CFOs survey capital structure dividend policy financing decision debt policy |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2171982 |
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