ABSTRACT
The conduction of this study involves regressing some specific external and internal factors on the
dependent liquidity function which is, liquid assets to the total asset (LIQ) for the 11-year period
from 2007-2017 of 8 Ghanaian banks listed on the stock exchange. Two separate analyses, fixed
effect, and random effect panel regressions were conducted during the analyses of the study with
the Hausman test performed to choose the best among the two. The result showed that bank size
is the only bank-specific variable that positively affects liquidity at 5% significant level whilst
capital adequacy, profitability, management efficiency did not show any significant impact on
liquidity. In addition, inflation rate, exchange rate, GDP and unemployment significantly
influenced liquidity, though inflation and GDP exhibited a positive impact whiles exchange rate
and unemployment had a negative impact at that same level of significance. The variables highly
explained variations on commercial banks liquidity as indicated by the coefficient of determination
of 0.8083. The study recommended banks consider both the external settings and internal factors
simultaneously in developing strategies for managing their liquidity position efficiently and the
constant reviewing of such policies and directives by Bank of Ghana, as the macroeconomic
factors continue and frequently varies in making sure they add to economic growth.
ADU, F (2021). Factors Influencing Liquidity Of Banks Listed On The Ghana Stock Exchange. Afribary. Retrieved from https://tracking.afribary.com/works/factors-influencing-liquidity-of-banks-listed-on-the-ghana-stock-exchange
ADU, FAUSTINA "Factors Influencing Liquidity Of Banks Listed On The Ghana Stock Exchange" Afribary. Afribary, 18 Apr. 2021, https://tracking.afribary.com/works/factors-influencing-liquidity-of-banks-listed-on-the-ghana-stock-exchange. Accessed 23 Nov. 2024.
ADU, FAUSTINA . "Factors Influencing Liquidity Of Banks Listed On The Ghana Stock Exchange". Afribary, Afribary, 18 Apr. 2021. Web. 23 Nov. 2024. < https://tracking.afribary.com/works/factors-influencing-liquidity-of-banks-listed-on-the-ghana-stock-exchange >.
ADU, FAUSTINA . "Factors Influencing Liquidity Of Banks Listed On The Ghana Stock Exchange" Afribary (2021). Accessed November 23, 2024. https://tracking.afribary.com/works/factors-influencing-liquidity-of-banks-listed-on-the-ghana-stock-exchange