Abstract:
The purpose of the study was to identify factors that contribute to financial distress of
some financial institutions in Ghana. The study is a descriptive survey which covered
financial institutions in the Effutu Municipality in the Central Region of Ghana. The
purposive sampling technique was used to select 42 employees from GCB bank,
Emesa Rural Bank, Akyempim Rural Bank, Zenith Bank and CBG Bank. Structured
questionnaires were distributed to respondents and results from the study show that
factors such as financial stress, inadequate capital, poor succession planning and
governance, poor government policies, inadequate managerial skills and accounting
systems and competition all leads to financial distress in banks in Ghana and
moreover, the study found out that banks in Ghana can review the business plans of
banks, cut down costs and also restructure their debts and renegotiate debts to
improve liquidity of the banks. Thus, it is highly recommended for organizations to
ensure that they budget carefully to avoid financial distress.
Description:
A dissertation in the Department of Accounting, School of Business, submitted to the School of Graduate Studies, in partial fulfillment of the requirements for the award of the degree of Master of Business Administration (Accounting) in the University of Education, Winneba
OCTOBER, 2021
