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A Panel Data Analysis of the Interactions between Lagged Profitability and Firms’ Financial Performance: Evidence from the Ghana Stock Exchange (GSE)

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A Panel Data Analysis of the Interactions between Lagged Profitability and Firms’ Financial Performance: Evidence from the Ghana Stock Exchange (GSE)


Mohammed Musah | Yusheng Kong | Stephen Kwadwo Antwi

https://doi.org/10.31142/ijtsrd23848



Mohammed Musah | Yusheng Kong | Stephen Kwadwo Antwi "A Panel Data Analysis of the Interactions between Lagged Profitability and Firms’ Financial Performance: Evidence from the Ghana Stock Exchange (GSE)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-4, June 2019, pp.633-638, URL: https://www.ijtsrd.com/papers/ijtsrd23848.pdf

This study sought to examine the association between lagged profitability and the financial performance of non-financial firms listed on the Ghana Stock Exchange (GSE). Specifically, the study sought to explore the relationship between lagged profitability and the firms’ financial performance as measured by ROA; assess the association between lagged profitability and the firms’ financial performance as measured by ROE; and to examine the affiliation between lagged profitability and the firms’ financial performance as measured by ROCE. Panel data extracted from the audited and published annual reports of fifteen (15) non-financial firms for the period 2008 to 2017 was used for the study. From the study’s Pearson Product-Moment Correlation Coefficient estimates, an insignificantly positive association between lagged profitability and the firms’ ROA and ROE was established. Also, an insignificantly negative affiliation between lagged profitability and the firms’ ROCE was discovered at the 95% confidence interval. Even though the association between lagged profitability and the firms’ financial performance was not statistically significant, the positive connection uncovered between lagged profitability and the firms’ ROA and ROE is an indication that significant increases in lagged profitability could have led to significant increases in ROA or ROE and vice-versa. Therefore, the determinants of firms’ financial performance like liquidity, leverage, capital structure, operational efficiency, size, growth, tangibility, age, inflation, economic growth (GDP), exchange rate, interest rate, competition, corporate taxes and market share among others, should be properly factored into the business decisions of the firms.

Interactions; Lagged Profitability; Financial Performance; Ghana Stock Exchange (GSE)


IJTSRD23848
Volume-3 | Issue-4, June 2019
633-638
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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