The aim of this paper is to examine the impact of capital structure on profitability of commercial banks in Ghana. The study used a sample of 21 commercial banks over the period 2000–2014 using panel corrected standard errors and two‐stage least‐squares estimation approaches. The results show that bank capital structure measured as capital‐to‐asset ratio is a robust and positive driver of bank performance (profitability) measures (return on assets and net interest margin). Additionally, the results further indicate that share of customer demand deposit positively affects bank profitability. The positive relationship between the capital‐to‐asset ratio and performance provides support for the bank capitalization policy implemented by the Bank of Ghana. Also, the findings provide evidence in support of the recent upsurge in bank short‐term deposit mobilization strategies and promotions by commercial banks in the country to enhance their deposit base.

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The main objective of the study is to examine the effect of foreign direct investment inflows on economic growth in Ghana: the moderating role of exchange rate volatility. The study used Auto-Regressive Distributed Lags (ARDL) and Generalized Autoregressive Conditional Heteroskedasticity (GARCH). The study was based mainly on secondary data from World Development Indicators (WDI) where annual time-series data of 39 years was used for the study ranging from 1980 to 2018. The study found that FDI had a positively significant impact on growth in the short run. Also, exchange rate volatility had a negatively significant impact on economic growth in the long run. However, domestic capital and trade openness had a positive significant impact on economic growth in the long run. The long-run estimate suggests that FDI decrease growth and exchange rate volatility dampen the negative effect of FDI on growth. The study, therefore, recommended, among other things, that the government should formulate policies that attract foreign direct investors into the country, as this may stabilize the economy.