Michael Kwakye
Department of Accounting, Banking & Finance
University College of Management Study
Correspondence: Michael Kwakye: michael.mk.4455@gmail.com
Abstract
This comprehensive study evaluates the effects of monetary and fiscal policies on the financial performance of Ghana’s listed commercial banks and how those effects influence the country’s economy. The study used a contemporaneous, deductive, explanatory, and case study technique, utilizing primary sources (questionnaires) and secondary sources (document analysis) in a cross-sectional inquiry. The data was statistically analyzed utilising thematic, descriptive, and inferential statistical analyses using the SPSS software. Using the correlation matrix to analyse inferential statistics data shows that government spending, taxes, inflation rate, and ROA and ROE have a statistically significant positive correlation with earnings quality. Management operational efficiency statistically and adversely correlates with ROA and ROE at a 95% confidence level. GDP growth and liquidity measurements, on the other hand, had a statistically negligible negative correlation with ROA and ROE. There is a positive and strong correlation between the adjusted R square of fiscal policy instruments and the internal control factors of 42.1%, 38.3%, 87.0%, and 68.1%, respectively.
Keywords: Monetary abd Fiscal Policies, Financial Performance, Taxes, inflation rate, Return on Assets (ROA), Return on Equity (ROE), Earnings Quality, Management Operational Efficiency, GDP Growth, Liquidity,
Citation: Kwakye., M. (2025), “The Effect of Monetary and Fiscal Policy on the Financial Performance of Listed Banks in Ghana”, African Journal of Procurement, Logistics & Supply Chain Management Society 2025, 8(2): pp.64-102, DOI: https://dx.doi.org/10.4314/ajplscm.v8i2.5
Submitted: 25 February, 2024 | Accepted: 10 March, 2025 | Published: 28 March, 2025
