TY - JOUR
T1 - Corporate reliance on bank loans
T2 - Evidence from listed companies in Ghana
AU - Abor, J.
N1 - Publisher Copyright:
© 2005, AOSIS (pty) Ltd. All rights reserved.
PY - 2005
Y1 - 2005
N2 - This paper examines the incidence of bank financing among Ghanaian listed companies and the determinants of listed firms’ reliance on bank borrowing. The empirical results from a regression model reveal that bank loans account for one-third of debt financing. This suggests that bank loans are important in financing Ghanaian listed firms. The results also show that asset structure, growth opportunities and interest rates have significantly positive associations with bank debt ratio, while age of the firm, size of the firm, profitability and firm risk are significantly and negatively related to bank debt ratio. The results generally indicate that bank loans represent an important source of financing Ghanaian listed firms.
AB - This paper examines the incidence of bank financing among Ghanaian listed companies and the determinants of listed firms’ reliance on bank borrowing. The empirical results from a regression model reveal that bank loans account for one-third of debt financing. This suggests that bank loans are important in financing Ghanaian listed firms. The results also show that asset structure, growth opportunities and interest rates have significantly positive associations with bank debt ratio, while age of the firm, size of the firm, profitability and firm risk are significantly and negatively related to bank debt ratio. The results generally indicate that bank loans represent an important source of financing Ghanaian listed firms.
KW - Bank loans
KW - Debts
KW - Financing
KW - Ghana
UR - http://www.scopus.com/inward/record.url?scp=85092417599&partnerID=8YFLogxK
U2 - 10.4102/sajems.v8i4.1177
DO - 10.4102/sajems.v8i4.1177
M3 - Article
AN - SCOPUS:85092417599
SN - 1015-8812
VL - 8
SP - 479
EP - 489
JO - South African Journal of Economic and Management Sciences
JF - South African Journal of Economic and Management Sciences
IS - 4
M1 - a1177
ER -