Title: Risk and performance of non-bank financial institutions

Authors: Patience Asamoah Sakyi; Isaac Ofoeda; Anthony Kyereboah-Coleman; Joshua Yindenaba Abor

Addresses: Department of Finance, University of Ghana, P.O. Box LG 75, Legon-Accra, Ghana ' Department of Accounting, University of Professional Studies, P.O. Box LG 149, Legon-Accra, Ghana ' Department of Finance, University of Ghana, P.O. Box LG 75, Legon-Accra, Ghana ' Department of Finance, University of Ghana, P.O. Box LG 75, Legon-Accra, Ghana

Abstract: This study examines the risk levels of Non-Bank Financial Institutions (NBFIs) and their effect on performance. A panel data analysis of 42 NBFIs over the period of 2006-2010 is used for the study. The results show that NBFIs have been safe as far as bankruptcy is concerned, over the period under study. The risk index used as a measure of overall risk levels show a high mean risk level suggesting that the risk of insolvency of NBFIs in Ghana has been low. The results of the study also establish that lower risk levels lead to an increase in performance of NBFIs. It is further shown that the size of NBFIs has a positive relationship with performance. The results also show that further increases in size of NBFIs measured as the squared of size has a positive impact on performance.

Keywords: NBFIs; non-bank financial institutions; risk levels; performance evaluation; financial services management; Ghana; institution size.

DOI: 10.1504/IJFSM.2014.062289

International Journal of Financial Services Management, 2014 Vol.7 No.1, pp.19 - 35

Received: 05 Oct 2012
Accepted: 06 Jan 2014
Published online: 21 Oct 2014 *

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