The idea of establishing a stock exchange in ghana lay on the drawing board for almost two decades prior to its implementation. Typically an employee is liable to ghana income tax based on income earned in respect of duties performed in. Capital structure and profitability of selected nonfinancial firms on the ghana stock exchange. More information on investing in ghana can be obtained from gipcs website, gh. Download financial data for companies listed on the ghana stock exchange and collective investment schemes. The past, present and future of stock exchange operations. The release which revealed a general positive financial performance for the mining. An empirical analysis of the performance of the ghana. Ghana stock exchange 5th floor, cedi house,liberia avenue p. It is a capitalizationweighted index with base value on 123110.
Ghana does not adopt the economic employer approach. In ghana, studies on dividend policy have been limited to the determinants of dividend payout ratios of listed firms amidu and abor, 2006, how does dividend policy affect performance of the firm on ghana stock exchange. Secondary data is collected about 14 different sectors in pakistan stock exchange, for the time period of 9 years2006 to 2014. If no, are the taxation authorities in ghana considering the adoption of this interpretation of economic employer in the future. To draw policy recommendations for improving upon the performance of the gsm. Ghana fixed income market gfim ghana alternative market gax. A macroeconomicdemographic model for ethiopia by asmerom kidane researc, h paper 7. Examining historical returns data during periods of high and low inflation can provide some clarity for investors. There is an 8% withholding tax on dividend income for all investors. The ghana stock exchange gse is the principal stock exchange of the country.
The study also seeks to examine the simultaneous influence of other firm specific variables on the tax planningmarket performance relationship. Numerous studies have looked at the impact of inflation on stock returns. Regression analysis was carried out to establish the relationship between dividend payout and firm performance. Most exports to industrialized countries consist of primary. It is a parliamentary republic comprising nine provinces. A company is resident for tax purposes if that company. The platform is entirely dedicated to african stock markets with the added functionality of access to historical data that include share price, market performances, trade volume and daily news. Pdf a study into growth and firms financial performance.
Effects of tax incentives on performance of listed firms in kenya ondabu ibrahim tirimba1, dr. Effects of corporate income tax on the profitability of mining. Effect of tax planning on firms market performance. Ghana 2017 budget commentary and tax highlights 4 economy and sector al outlook for 2017 2016 economic performance t. Performance of the ghana stock exchange and economic growth. Ghana stock market composite gseci ghana stock exchange composite gseci is a major stock market index which tracks the performance of all companies traded in the ghana stock exchange. Vish ashiagbor country senior partner pwc ghana 2017 budget highlights commentary governments.
The effect of ghana stock exchange performance on the ghanaian economy. The effect of the stock exchange, page 1 the effect of the stock exchange on economic growth. Evidence from ghana stock exchange felix kwame aveh1 and dadson awunyovitor2 abstract. The ghana stock exchange announces for the information of the general investing public that, the underlisted listed companies have sought permission for the extension of time to submit their audited financial statements for the year ended december 31, 2019. Also key challenges confronting the ghana stock exchange gse are. The easiest way to invest in the ghana stock exchange.
Ghana stock exchange, stock listing, listed firms, unlisted firms, firm performance. There is an 8% withholding tax which is also the final tax on dividend income for all investors, both resident and nonresident. Ghana stock exchange sees strong performance in 2017. An essay on the effects of taxation on the corporate. Every company operates within the internal and external environments of business. The development of accounting and reporting in ghana. The findings indicated that dividend payout was a major factor affecting firm performance. Pdf the effect of corporate income tax on financial. Accra securities market limited which was never made operational. The ghana stock exchange gse says it expects much more improvement in secondary market activity in 2017, on the basis of the positive macroeconomic environment. Exchange rate policy and macroeconomic performance in ghana by c. Nonresident companies are, in principle, free to transfer abroad their net aftertax profits unless their activities are financed with locally raised capital. Nov 30, 20 the effect of corporate income tax on financial performance of listed manufacturing firms in ghana 1. Ghana commodity exchange partners with world food programme to manage warehouse in ejura 01oct2019.
Pdf capital structure and profitability of selected non. Ghana stock exchange, tax planning, market performance, longitudinal correlative design, investors. Annual reports of companies listed on the ghana stock exchange. This research aims to establish the relationship between capital structure and financial performance in 196 romanian companies listed on the bucharest stock exchange and operating in the manufacturing sector, over a period of eightyears 20032010. Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency. Capital income taxation has not been studied well in ghana so far. The ghanaian domestic economy in 2012 revolved around services, which accounted for 50% of gdp and employed 28% of the work force.
Provider of financial market data, news, analysis and research with a focus on africa. The preparation of the financial results was supervised by the group financial director, arno daehnke bsc, msc, phd. Ghana stock exchange during the first 15 years of the establishment of the stock exchange, classes 1, 2, 3 and 4 assets e. The number of listed companies also increased from 22 in. This was a massive increase from the 2016 figure of ghc 5,377,510, indicating a % jump in.
Mar 24, 2020 examining historical returns data during periods of high and low inflation can provide some clarity for investors. Box 18, atebubu, brong ahafo region, ghana there has been profuse development in the stock markets all over. Although we have taken all reasonable care in compiling this publication, we do. Oct 21, 2015 effect of capital gain taxation on stock market performance evidence from stock market in pakistan,sparkles soft. The chartered institute of taxation ghana was incorporated on 10th august 2016, by the chartered institite of taxation act 2016, act 916 to promote the study of taxation and regulate the practice of taxation in ghana. Adeyiga commissioned by ghana integrity initiative gii in collaboration with oxfam america with funding from german international development giz accra. The country of ghana is located in west africa, attracting foreign direct investment continues to be a priority for the government of ghana gog, given the urgent need to restore the countrys economic momentum and overcome an annual infrastructure funding gap of at least usd 1. This comes on the back of the phenomenal performance of the ghana stock exchange gse in 2017. Kisaka erastus sifunjo3 phd finance candidate, department of economics, accounts and finance, jomo kenyatta university of agriculture and technology, nairobi, kenya1.
It currently lists 42 equities from 37 companies and 2 corporate bonds. Everywhere i turned it seemed like people wanted to know if buying the stock was a good investment or not and how much they could expect to earn from investing in it. Get free research paper on the effect of naira devaluation on small and medium scale enterprises in nigeria project topics and materials in nigeria. The ghana stock exchange gse has 42 listed companies, four government bonds and one corporate bond. Effect of capital gain taxation on stock market performance. Our goal is to deliver and provide the latest news and analysis on economies, companies and industries in the region. Comparative studies of the performance of manufacturing companies and banking. Ghana stock exchange gse dividends african markets.
She purchased another 120,000 shares on 01102008 at a price of gh. The objective of the study is to find out the impact of capital structure on firms profitability and explore the optimal capital structure of cement industry of pakistan. Aboagye et al 2008 in studying the performance of stocks in ghana, using an investment of the same amount in treasury bills and shares over a period of 1991 and 2001, found out that investors in stock exchange traded shares earned on average 54% per annum, whereas treasury bill investors earned 36. The data are collected of 18 companies listed on karachi stock exchange kse for the time series of 10 year from 2006to2015. After 3 years of tax holidays, the companies pay a. Through its automated trading system, the gse opens for continuous trading every working day from 10. Historically, the south africa stock market reached an all time high of 61776.
This is also with the assumption that forecast revenues will materialise. Box up 1205 knust, kumasi, ghana francis naaidar p. Effect of capital gain taxation on stock market performance evidence from stock market in pakistan,sparkles soft. Bank of ghana slashes key interest rate to near eightyear low as global pandemic threatens growth. The past, present and future of stock exchange operations in. Ghana stock exchange set to request vodafone to list on bourse 24jan2019. Chargeable assets do not include trading stock, securities of a company listed on the ghana stock exchange during the first 15 years of the establishment of the stock exchange or classes 1, 2, 3 and 4 assets e. The effect of corporate income tax on financial performance of listed manufacturing firms in ghana john gartchie gatsi department of accounting and finance, university of. The study also seeks to examine the simultaneous influence of other firm specific vari ables on the tax planningm arket performance.
Akua has the following transaction in annam company limited. As a result the stock exchange market is able to influence investment and economic growth. Using a longitudinal correlative design, the study used 22 nonfinancial companies. The impact of capital structure on firms profitability. We take pride in the fact that our services add value by. The effect of the stock exchange on economic growth. Asset pricing and information efficiency of the ghana stock market. Extensive research indicates that fdi is sensitive to taxation in host countries hines, 1997. The study sampled 7 banks out of the 11 banks listed on the ghana stock exchange as at 2017 over a sevenyear period from 2008 to 2014 and data from their respective annual financial statements were extracted. The gipc law also applies to foreign investment in acquisitions, mergers, takeovers and new investments, as well as to portfolio investment in stocks, bonds, and other securities traded on the ghana stock exchange. This study aims to contribute to the closing of this. The large stock exchange market lower the cost of mobilizing savings, facilitating investment. Kawor, kportorgbi 2014 assessed the association between tax planning and firms market performance in ghana.
Both foreign and local companies are allowed to list on the gse. Ghana stock exchange, tax planning, market performance, longit udinal correlative design, investors. Typically an employee is liable to ghana income tax based on income earned in respect of duties performed in the countryterritory. Exchange controls are administered by the bank of ghana and operate over imports, exports, outward transfers of capital, profits, royalties, interest, fees and expatriates income. Settlement of trades, handled by bank of ghanas central securities depositary, is. The south africa ftsejse africa all shares index rebounded more than 1.
The study also seeks to examine the simultaneous influence of other firm specific variables on the. This paper provides an empirical analysis of relationship between economic growth and its determinants with special focus on the stock market development in zimbabwe. Pdf effect of tax planning on firms market performance. The effect of corporate income tax on financial performance of listed manufacturing firms in ghana. Amidu, 2007, and dividend policy and share price volatility asamoah, 2010.
Besides the industrialization associated with minerals and oil, industrial development in ghana remains basic, often associated with plastics such as for chairs, plastic bags, razors and pens. Sanitizing ghana s public sector wage administration will save the country quite substantial revenue losses which can be banking sector and capital market development initiatives fiscal and expenditure control initiatives ghana 2017 budget commentary and tax highlights 6. The securities and exchange commission regulates activities on the exchange. This study seeks to examine the influence of firmspecific determinants of stock prices in an emerging market with particular reference to firms listed on the ghana stock exchange. The internal environments are within a firm such that the prevailing factors are most times very subject to the control of the managers. The exchange was incorporated in july 1989 with trading commencing in 1990. The ghana stock exchange gse is the principal stock exchange of ghana. Ghana economy gdp, inflation, cpi and interest rate. The ghana stock exchange was recognized as number one among the top 25 performing stock markets in the world, with a percentage change in price index of 58.
Ghana stock exchange to transform to company limited by shares 12jul2019. For example, the annual reports in args database for benso oil palm plantation gse. Firmspecific determinants of stock prices in an emerging. The impact of capital structure on financial performance in. Relationship between capital structure and banks performance. A quick guide to taxation in ghana a brief profile of pwc about us global overview. The republic of south africa is a state in southern africa. A study into growth and firms financial performance. The ghana stock exchange gse has 43 listed companies, 4 government bonds and 1 corporate bond. The effect of lending interest rates on the performance of. The chartered institute of taxation ghana has been operating as a professional body.
This is approved for students in accountancy, business, computer science, economics, engineering, arts. The return on index recorded on the ghana stock exchange for the year 20. Corporate revenues are currently subject to double taxation. An essay on the effects of taxation on the corporate financial policy george contos, internal revenue service the taxation of corporate profits in the united states has been one of the most widely discussed issues in the area of public finance. Research journal of finance and accounting issn 22221697 paper issn 22222847 online vol. Pdf the effect of ghana stock exchange performance on. The stock exchange market mainly provides liquidity by enabling firm to raise funds through the sell of securities with relative ease and speed. Cal brokers to resign from ghana stock exchange 17sep2019. Firmspecific determinants of stock prices in an emerging capital market. The recent performance of the ghana stock market and foreign direct investments have been significant. Our databases store the annual reports of companies listed on the ghana stock exchange gse, with the earliest available report being from its year of listing, through to its recently ended financial year.
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