Financial Intermediation by Microfinance Banks in Rural Sub-Saharan Africa: Financial Intermediation Theoretical Approach
George Okello Candiya Bongomin, Francis Yosa, Joseph Baleke Yiga Lubega, Pierre Yourougou et Alain Manzi Amani
Premised on Meta analysis of financial intermediation theory by Gurley and Shaw (1960), Leland and Pyle (1977), Diamond and Dybvig (1983), Allen and Santomero (1996), Scholtens and van Wensveen (2000), the main purpose of this study is to test for the predictive power of each of the dimensions of financial intermediation of market penetration and quality of financial services on financial inclusion of the poor by microfinance banks in rural sub-Saharan Africa grounded on the financial intermediation theory. This study adopted a cross-sectional research design and data were collected from 400 poor households located in rural Uganda. The data were analyzed using ordinary least square hierarchical regression (OLS) in SPSS (statistical packages for social sciences) to generate the explanatory power of each of the dimensions of financial intermediation on financial inclusion based on coefficient of determination (R²). In addition, results from analysis of variances (ANOVA) were also generated to establish the differences in the perceptions of the poor towards being financially included through financial intermediation. The results revealed that market penetration and quality of financial services as dimensions of financial intermediation significantly explains 22 percent of the variation in financial inclusion of the poor in rural Uganda. Additionally, when individual effects were considered, both market penetration and quality of financial services had significant and positive effects on financial inclusion of the poor in rural Uganda. Accordingly, our study contributes and recommends specific policies toward the role of financial intermediaries in financial deepening, especially in rural sub-Saharan Africa where there are limited presence of traditional banking structures to serve the unbanked rural poor households.
Isaac Boadi, John Kwaku Mensah Mawutor, Modupeola Adefunso Dzorka et Vivian Aku Gbade
The present study evaluates the market structure of Ghana’s banking industry and estimates the nature and degree of competition. This study uses non-structural methodology proposed by Panzar-Rosse Model known as “H-statistic” to empirically assess competitiveness in the Ghanaian banking market. The study uses 23 banks in Ghana from 2000 to 2019, compiled and reported by Ghana Association of Bankers (GAB). The study results show that banks in Ghana derive their revenue in conditions of monopolistic competition. Thus, Contestable markets theory and Chamberlainian competition theory are validated by the study results. Furthermore, the study results revealed that from 2000 to 2019, after various structural reforms including the implementation of the FINSAP, competition in the Ghanaian banking sector increased. Finally, when the dataset was decomposed into local and foreign banks, the results indicate that monopolistic competition market conditions are found for both local and foreign banks. Managerially, the presence of a monopolistic market condition adds to the call for managers of the banks to consider factor input prices in an attempt to generate more revenues. Second, to avoid negative consequences of competition, managers of these banks should not rely on a single income source but also indulge in non-intermediation activities. In terms of policy, pro-structural shift policies that have helped with the transition from a monopoly structure to a monopolistic competition free entry or contestable market structure should be rigorously pursued by the policymakers. Besides, policy directives that enhance greater consolidation in the banking sector shouldbe pursued rigorously. Finally, the results from this study could help policy-makers to fashion an appropriate optimal intervention and stability policies geared towards enhancing banking stability at different levels of bank competition.
Anjali Chaudhry, Xiaoyun Cao, Robert C. Liden, Sébastien Point et Prajya R. Vidyarthi
The goal of this article is to present qualitative and quantitative reviews of servant leadership literature since its formal inception in 1970. Summarizing previous studies, we theorized and explored issues concerning the conception and relevance of servant leadership, the merits of varied measurements, issues concerning construct dimensionality, and the potential effects of national culture on the relationship between servant leadership and its correlates. We developed theory to distinguish servant leadership from competing leadership theories of transformational leadership and leader-member exchange (LMX) theory and examined the direct and the incremental influence of servant leadership on individual and unit-level outcomes. To consolidate extant research and to guide future theory development we tested a mediational process model linking servant leadership to outcomes. Meta-analytic results supported distinctiveness of servant leadership, showed effects of servant leadership on individual-level and unit-level outcomes, and supported theorized mediating effects of trust and fairness perceptions in the relationship.
Mohammed Abdul Nayeem
This study aims to understand and examine the relationship between socio-demographic factors and the attitudes toward women managers in the context of the United Arab Emirates (UAE). This research paper is an exploratory research and we have taken into consideration a basic framework to understand the relationship that exists among different factors responsible for different perceptions and attitudes toward women managers. The literature review has focused on the various overarching perspectives of women managers and the attitudes formed by different societal actors. The paper draws mainly from the Social Learning Theory of Albert Bandura (1977). A sample of 213 employees was drawn to understand the relationship. The respondents were administered the well-established (Women as Managers Survey) WAMS questionnaire to get responses on various dimensions. Multivariate Regression Analysis using SPSS 26.0 version was applied to analyze the data.
The findings of the study are parallel to previous works such that age, work experience, and educational level found support to the hypothesized relationship whereas gender and marital status did not. Limitations and future direction along with practical implications and recommendations are also given to draw suitable inferences.