Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270709 
Year of Publication: 
2019
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 7 [Issue:] 1 [Article No.:] 1701909 [Year:] 2019 [Pages:] 1-12
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This paper investigates the effect of corruption on bank profitability in Ghana using bank-level dataset spanning 2008 to 2017. By employing the system Generalized Method of Moments (GMM) technique, the study finds a significant negative relationship between corruption and bank profitability. This supports the "sand the wheels" view on corruption and controverts the "grease the wheels" view, which hypothesizes that corruption boost firm performance. Controlling for bank-specific and macroeconomic factors, the findings further reveal that, while bank size, capital adequacy, and inflation have a significant positive effect on profitability, management efficiency and monetary policy rate negatively and significantly drive bank profits. The study discusses key implications for policy.
Subjects: 
Corruption
Bank profitability
GMM
sand the wheels
grease the wheels
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.