This study seeks to examine the determinants of capital structure of banks in Sub-Sahara Africa. Keywords: Capital structure, Return on asset, Total debt ratio, Long term debt ratio, Short term debt ratio, Asset tangibility.
This study has employed the use of panel data techniques to analyze the determinants of capital structure of banks in sub-Sahara Africa The dependent variables used in the study were short-term debt ratio (STDR), long-term debt ratio (LTDR) and the total debt ratio (TDAR
Contribution/ OriginalityMost empirical studies that examine the determinants of capital structure have been done for developed or specific country and there is little evidence in Sub-Sahara Africa. This study
625variables as determinants of capital structure of banks. This study is one of very few studies which have investigated the determinants of capital structure of banks in Sub-Sahara Africa. This study contributes by determining the significant variables that determines banks capital structure in Africa.
Purpose
The purpose of this paper is to investigate the dynamic link between financial inclusion and financial sector development (FSD) in Sub-Saharan Africa.
Design/methodology/approach
This paper employs a panel vector autoregressive framework to examine the dynamic link between financial inclusion and FSD in Sub-Saharan Africa.
Findings
The findings indicate that there is a reverse causality between FSD and financial inclusion in both the Sub-Saharan Africa countries sample and the full sample. It is evident that financial inclusion is a driver of FSD and vice versa.
Practical implications
The practical implication of this study is that financial inclusion should not only be pursued as a policy objective but it could also be an outcome variable of FSD and vice versa. This implies that African economies and governments in their effort to enhance financial inclusion, FSD can serve as a policy tool. This means that policies aimed at promoting financial inclusion will not impede FSD because the two are complementary. This suggests that we can achieve financial inclusion without sacrificing FSD and vice versa.
Originality/value
This paper provides first empirical evidence of the link between financial inclusion and FSD from the Sub-Saharan Africa perspective using data sourced from World Development Indicators spanning from 1990 to 2014 for 48 Sub-Saharan African economies and 217 economies in the world for the full sample.
The impact of international remittances on various social, economic and political phenomena has been studied by scholars. A limited number of these studies have examined whether international remittances influence household food security. However, most of these studies are country-specific. Other studies explore specific regions or towns within a country. Cross-country studies on the topic are lacking. We attempt to fill this gap by examining data for over 48,000 people in 32 Sub-Saharan African countries. Our results reveal two facts: First, we find that receiving international remittances is positively associated with more household food security. Second, and more remarkably, the frequency of receiving remittances matters more for this relationship. Accordingly, we conclude that while international remittances are important for improving household food security, the frequency with which they are received is more important.
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