The Effect of Monetary and Fiscal Policy on the Financial Performance of Listed Banks in Ghana
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.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 using the SPSS software, utilising thematic, descriptive, and inferential statistical analyses. 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. On the other hand, GDP growth and liquidity measurements had a statistically negligible negative correlation with ROA and ROE. A positive and strong correlation exists 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
