The effect of financial leverage on profitability: An empirical analysis of recapitalized banks in Ghana

Bunyaminu, A.; Yakubu, I. N.; Bashiru, S.

dc.contributor.author	Bunyaminu, A.
dc.contributor.author	Yakubu, I. N.
dc.contributor.author	Bashiru, S.
dc.date.accessioned	2022-09-09T14:10:01Z
dc.date.available	2022-09-09T14:10:01Z
dc.date.issued	2021
dc.identifier.issn	2576-1293
dc.identifier.uri	https://www.cribfb.com/journal/index.php/ijafr/article/view/1227
dc.identifier.uri	http://atuspace.atu.edu.gh:8080/handle/123456789/260
dc.description.abstract	In this study, we examine the impact of financial leverage on profitability of recapitalized banks in Ghana over the period 2008-2017. Based on the random effects and fixed effects estimation strategies, our findings reveal that leverage exerts a significant negative effect on banks’ profits regardless of the proxy of profitability. This provides empirical support for the pecking order theory. The results also establish that bank size positively and significantly enhances profitability. In light of our findings, we conclude that financial leverage is detrimental to banks' profit growth in Ghana.	en_US
dc.publisher	International Journal of Accounting and Finance Review	en_US
dc.title	The effect of financial leverage on profitability: An empirical analysis of recapitalized banks in Ghana	en_US
dc.type	Article	en_US