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Mediating Effect of Human Capital on the Correlates of Corporate Governance, Credit Administration on Asset Quality: Evidence from Ghana Financial Industry

Author

Listed:
  • Daniel Adofo Kwakye Ameyaw

    (Meridian Ghana Conference of Seventh-day Adventists, Ghana)

  • Williams Kwasi Peprah

    (Department of Accounting, Economics and Finance, Andrews University, Berrien Springs, MI, USA)

  • Isaac Anowuo

    (Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)

  • Ebenezer Owusu-Yeboah

    (School of Business, Valley View University, Accra, Ghana)

  • Reuel Esteban Narbarte

    (College of Business, Adventist University of the Philippines, Silang, Cavite, Philippines)

Abstract

It is essential to understand the variables that affect asset quality because of their implications on the risk to financial institutions and for financial supervision and financial stability. There exist empirical studies establishing significant relationships between corporate governance and asset quality, and credit administration and asset quality. What was missing that this study investigated based on Ghanaian financial institutions was the mediating role of human capital. Based on a correlational research design and randomly selecting financial institutions and their employees as respondents. The study resulted that human capital fully and significantly mediates the relationships between corporate governance and asset quality, and credit administration and asset quality. Therefore, human capital elements of the knowledge, skills, and experience of the board members and employees are fully critical in the attainment of good asset quality. The study recommends that financial institutions must fully include the level of the human capital of their employees and board members when evaluating the factors that must exist to ensure that they have good asset quality.

Suggested Citation

  • Daniel Adofo Kwakye Ameyaw & Williams Kwasi Peprah & Isaac Anowuo & Ebenezer Owusu-Yeboah & Reuel Esteban Narbarte, 2024. "Mediating Effect of Human Capital on the Correlates of Corporate Governance, Credit Administration on Asset Quality: Evidence from Ghana Financial Industry," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 27(02), pages 1-29, June.
    • Handle: RePEc:wsi:rpbfmp:v:27:y:2024:i:02:n:s0219091524500097
    DOI: 10.1142/S0219091524500097
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