This study seeks to examine the determinants of profitability of manufacturing companies in Ghana. The study covered the period 2005-2015 using data gathered from five selected manufacturing companies listed on the Ghana Stock Exchange (GSE). The Study employed the Multivariate Regression Analysis Technique. Return on Assets, a measure of profitability, was used as the dependent variable whereas leverage, liquidity, firm size, tangibility, GDP, inflation and interest rate were used as the predictor variables. The findings of the study established that there is a statistically significant positive relationship between profitability, liquidity and firm size whereas leverage and interest rate show a statistically significant negative relationship with profitability. The macroeconomic environment in Ghana plays an essential role in the survival and profitability of manufacturing companies in Ghana as evident in the empirical results. Thus, it is vital that managers of the economy keep a close eye on the implications of their policies and their impact on the manufacturing sector in their attempt to grow the economy. Future research should consider the other equally important sectors of the economy. It should also include more variables such as taxation and regulation indicators, exchange rates, management quality and corporate governance to give room for a more robust result and findings. JEL CLASSIFICATIONS: L6, O14

This study seeks to examine the determinants of profitability of manufacturing companies in Ghana. The study covered the period 2005-2015 using data gathered from five selected manufacturing companies listed on the Ghana Stock Exchange (GSE). The Study employed the Multivariate Regression Analysis Technique. Return on Assets, a measure of profitability, was used as the dependent variable whereas leverage, liquidity, firm size, tangibility, GDP, inflation and interest rate were used as the predictor variables. The findings of the study established that there is a statistically significant positive relationship between profitability, liquidity and firm size whereas leverage and interest rate show a statistically significant negative relationship with profitability. The macroeconomic environment in Ghana plays an essential role in the survival and profitability of manufacturing companies in Ghana as evident in the empirical results. Thus, it is vital that managers of the economy keep a close eye on the implications of their policies and their impact on the manufacturing sector in their attempt to grow the economy. Future research should consider the other equally important sectors of the economy. It should also include more variables such as taxation and regulation indicators, exchange rates, management quality and corporate governance to give room for a more robust result and findings.

Microcredits are the largest assets and the main sources of income to rural and community banks in Ghana.That notwithstanding, microcredit is relevant to rural and community banks in Ghana but it is risky and expensive to manage. Based on a review of extant literature, this study aims to demonstrate how microcredits are managed in rural and community banks. This was achieved by examining literature on the criteria used in managing credit worthy clients, the effectiveness of the loan disbursement procedures, the extent to which the banks educate and supervise the customers and problems encountered in recovering bank loans granted. The review indicates that the bank had higher default rate as a result of the high interest rate and time of making credits available to the beneficiaries, hence, operating far below the expected recovery rate. It was recommended that banks should be mindful of the time they give out credits to the clients to meet the purpose for which loans were taken by the clients. It was also recommended that banks should adopt innovative lending methodologies such as group lending and dynamic lending to joint-liable group to solve the problem of high default rate.