Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies

Ibrahim Zubairu; Patrick Akeba Atiawin; Ahmed Jamal Iddrisu; Benjamin Amoako Amanquah

doi:doi:10.11648/j.ijafrm.20251001.12

Research Article |

| Peer-Reviewed

Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies

Ibrahim Zubairu^*

, Patrick Akeba Atiawin

, Ahmed Jamal Iddrisu

, Benjamin Amoako Amanquah

Published in International Journal of Accounting, Finance and Risk Management (Volume 10, Issue 1)

Received: 25 November 2024 Accepted: 16 December 2024 Published: 6 February 2025

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Abstract

This study used data from a specific era to analyze the macroeconomic factors of financial success in Ghana's listed manufacturing enterprises. Using secondary data, the study investigates how inflation, exchange rate variations, Gross Domestic Product (GDP) growth rates, and interest rate changes affect key financial measures, notably Return on Equity (ROE) and Return on Assets (ROA). The findings show that, whereas exchange rate fluctuations have a major impact on financial performance, inflation, GDP growth rates, and interest rate changes do not have the same impact on the financial performance of the manufacturing firms listed on the Ghana Stock Exchange. Firm size emerges as a significant moderator, influencing the complex linkages between macroeconomic variables and financial results of the listed manufacturing firms. The regression models show impressive goodness-of-fit, as evidenced by high R-squared values, low standard errors of regression, and positive log likelihood. Despite the fact that inflation had no statistically significant impact on the listed manufacturing companies' profitability, we advise that the firms keep an eye on both domestic and international inflation to comprehend its indirect effects on pricing and costs and to provide guidance for their financial management. We also advise specific risk management measures for currency fluctuations, in-depth analysis of inflation dynamics, and continual monitoring of macroeconomic data for manufacturing enterprises. We suggest that future studies should compare manufacturing industries and economic cycles to better understand the impact of technology, trade dynamics, and government policies on manufacturing firms' bottom lines. This could lead to the development of more targeted financial strategies.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 10, Issue 1)
DOI	10.11648/j.ijafrm.20251001.12
Page(s)	23-41
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Manufacturing Enterprises, Financial Performance, Return on Equity (ROE), Return on Assets (ROA), GDP Growth Rate, Inflation, Risk Management and Currency Fluctuations

References

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Zubairu, I., Atiawin, P. A., Iddrisu, A. J., Amanquah, B. A. (2025). Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies. International Journal of Accounting, Finance and Risk Management, 10(1), 23-41. https://doi.org/10.11648/j.ijafrm.20251001.12

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ACS Style

Zubairu, I.; Atiawin, P. A.; Iddrisu, A. J.; Amanquah, B. A. Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies. Int. J. Account. Finance Risk Manag. 2025, 10(1), 23-41. doi: 10.11648/j.ijafrm.20251001.12

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AMA Style

Zubairu I, Atiawin PA, Iddrisu AJ, Amanquah BA. Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies. Int J Account Finance Risk Manag. 2025;10(1):23-41. doi: 10.11648/j.ijafrm.20251001.12

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@article{10.11648/j.ijafrm.20251001.12,
  author = {Ibrahim Zubairu and Patrick Akeba Atiawin and Ahmed Jamal Iddrisu and Benjamin Amoako Amanquah},
  title = {Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies
},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {10},
  number = {1},
  pages = {23-41},
  doi = {10.11648/j.ijafrm.20251001.12},
  url = {https://doi.org/10.11648/j.ijafrm.20251001.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20251001.12},
  abstract = {This study used data from a specific era to analyze the macroeconomic factors of financial success in Ghana's listed manufacturing enterprises. Using secondary data, the study investigates how inflation, exchange rate variations, Gross Domestic Product (GDP) growth rates, and interest rate changes affect key financial measures, notably Return on Equity (ROE) and Return on Assets (ROA). The findings show that, whereas exchange rate fluctuations have a major impact on financial performance, inflation, GDP growth rates, and interest rate changes do not have the same impact on the financial performance of the manufacturing firms listed on the Ghana Stock Exchange. Firm size emerges as a significant moderator, influencing the complex linkages between macroeconomic variables and financial results of the listed manufacturing firms. The regression models show impressive goodness-of-fit, as evidenced by high R-squared values, low standard errors of regression, and positive log likelihood. Despite the fact that inflation had no statistically significant impact on the listed manufacturing companies' profitability, we advise that the firms keep an eye on both domestic and international inflation to comprehend its indirect effects on pricing and costs and to provide guidance for their financial management. We also advise specific risk management measures for currency fluctuations, in-depth analysis of inflation dynamics, and continual monitoring of macroeconomic data for manufacturing enterprises. We suggest that future studies should compare manufacturing industries and economic cycles to better understand the impact of technology, trade dynamics, and government policies on manufacturing firms' bottom lines. This could lead to the development of more targeted financial strategies. 
},
 year = {2025}
}

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TY  - JOUR
T1  - Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies

AU  - Ibrahim Zubairu
AU  - Patrick Akeba Atiawin
AU  - Ahmed Jamal Iddrisu
AU  - Benjamin Amoako Amanquah
Y1  - 2025/02/06
PY  - 2025
N1  - https://doi.org/10.11648/j.ijafrm.20251001.12
DO  - 10.11648/j.ijafrm.20251001.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 23
EP  - 41
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20251001.12
AB  - This study used data from a specific era to analyze the macroeconomic factors of financial success in Ghana's listed manufacturing enterprises. Using secondary data, the study investigates how inflation, exchange rate variations, Gross Domestic Product (GDP) growth rates, and interest rate changes affect key financial measures, notably Return on Equity (ROE) and Return on Assets (ROA). The findings show that, whereas exchange rate fluctuations have a major impact on financial performance, inflation, GDP growth rates, and interest rate changes do not have the same impact on the financial performance of the manufacturing firms listed on the Ghana Stock Exchange. Firm size emerges as a significant moderator, influencing the complex linkages between macroeconomic variables and financial results of the listed manufacturing firms. The regression models show impressive goodness-of-fit, as evidenced by high R-squared values, low standard errors of regression, and positive log likelihood. Despite the fact that inflation had no statistically significant impact on the listed manufacturing companies' profitability, we advise that the firms keep an eye on both domestic and international inflation to comprehend its indirect effects on pricing and costs and to provide guidance for their financial management. We also advise specific risk management measures for currency fluctuations, in-depth analysis of inflation dynamics, and continual monitoring of macroeconomic data for manufacturing enterprises. We suggest that future studies should compare manufacturing industries and economic cycles to better understand the impact of technology, trade dynamics, and government policies on manufacturing firms' bottom lines. This could lead to the development of more targeted financial strategies. 

VL  - 10
IS  - 1
ER  -

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Author Information

Ibrahim Zubairu

Department of Accounting and Finance, Accra Technical University, Accra, Ghana

Contact Email

http://orcid.org/0000-0001-7935-6621
Patrick Akeba Atiawin

Centre for Global Economic Research, Accra, Ghana

http://orcid.org/0000-0002-3224-2907
Ahmed Jamal Iddrisu

Department of Banking and Finance, University of Professional Studies (UPSA), Accra, Ghana

http://orcid.org/0000-0001-8003-6457
Benjamin Amoako Amanquah

Department of Accounting and Finance, Accra Technical University, Accra, Ghana

http://orcid.org/0009-0000-1127-4953

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Zubairu, I., Atiawin, P. A., Iddrisu, A. J., Amanquah, B. A. (2025). Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies. International Journal of Accounting, Finance and Risk Management, 10(1), 23-41. https://doi.org/10.11648/j.ijafrm.20251001.12

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ACS Style

Zubairu, I.; Atiawin, P. A.; Iddrisu, A. J.; Amanquah, B. A. Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies. Int. J. Account. Finance Risk Manag. 2025, 10(1), 23-41. doi: 10.11648/j.ijafrm.20251001.12

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AMA Style

Zubairu I, Atiawin PA, Iddrisu AJ, Amanquah BA. Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies. Int J Account Finance Risk Manag. 2025;10(1):23-41. doi: 10.11648/j.ijafrm.20251001.12

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@article{10.11648/j.ijafrm.20251001.12,
  author = {Ibrahim Zubairu and Patrick Akeba Atiawin and Ahmed Jamal Iddrisu and Benjamin Amoako Amanquah},
  title = {Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies
},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {10},
  number = {1},
  pages = {23-41},
  doi = {10.11648/j.ijafrm.20251001.12},
  url = {https://doi.org/10.11648/j.ijafrm.20251001.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20251001.12},
  abstract = {This study used data from a specific era to analyze the macroeconomic factors of financial success in Ghana's listed manufacturing enterprises. Using secondary data, the study investigates how inflation, exchange rate variations, Gross Domestic Product (GDP) growth rates, and interest rate changes affect key financial measures, notably Return on Equity (ROE) and Return on Assets (ROA). The findings show that, whereas exchange rate fluctuations have a major impact on financial performance, inflation, GDP growth rates, and interest rate changes do not have the same impact on the financial performance of the manufacturing firms listed on the Ghana Stock Exchange. Firm size emerges as a significant moderator, influencing the complex linkages between macroeconomic variables and financial results of the listed manufacturing firms. The regression models show impressive goodness-of-fit, as evidenced by high R-squared values, low standard errors of regression, and positive log likelihood. Despite the fact that inflation had no statistically significant impact on the listed manufacturing companies' profitability, we advise that the firms keep an eye on both domestic and international inflation to comprehend its indirect effects on pricing and costs and to provide guidance for their financial management. We also advise specific risk management measures for currency fluctuations, in-depth analysis of inflation dynamics, and continual monitoring of macroeconomic data for manufacturing enterprises. We suggest that future studies should compare manufacturing industries and economic cycles to better understand the impact of technology, trade dynamics, and government policies on manufacturing firms' bottom lines. This could lead to the development of more targeted financial strategies. 
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Assessing the Effects of Macroeconomic Factors on the Financial Performance of Ghanaian Listed Manufacturing Companies

AU  - Ibrahim Zubairu
AU  - Patrick Akeba Atiawin
AU  - Ahmed Jamal Iddrisu
AU  - Benjamin Amoako Amanquah
Y1  - 2025/02/06
PY  - 2025
N1  - https://doi.org/10.11648/j.ijafrm.20251001.12
DO  - 10.11648/j.ijafrm.20251001.12
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 23
EP  - 41
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20251001.12
AB  - This study used data from a specific era to analyze the macroeconomic factors of financial success in Ghana's listed manufacturing enterprises. Using secondary data, the study investigates how inflation, exchange rate variations, Gross Domestic Product (GDP) growth rates, and interest rate changes affect key financial measures, notably Return on Equity (ROE) and Return on Assets (ROA). The findings show that, whereas exchange rate fluctuations have a major impact on financial performance, inflation, GDP growth rates, and interest rate changes do not have the same impact on the financial performance of the manufacturing firms listed on the Ghana Stock Exchange. Firm size emerges as a significant moderator, influencing the complex linkages between macroeconomic variables and financial results of the listed manufacturing firms. The regression models show impressive goodness-of-fit, as evidenced by high R-squared values, low standard errors of regression, and positive log likelihood. Despite the fact that inflation had no statistically significant impact on the listed manufacturing companies' profitability, we advise that the firms keep an eye on both domestic and international inflation to comprehend its indirect effects on pricing and costs and to provide guidance for their financial management. We also advise specific risk management measures for currency fluctuations, in-depth analysis of inflation dynamics, and continual monitoring of macroeconomic data for manufacturing enterprises. We suggest that future studies should compare manufacturing industries and economic cycles to better understand the impact of technology, trade dynamics, and government policies on manufacturing firms' bottom lines. This could lead to the development of more targeted financial strategies. 

VL  - 10
IS  - 1
ER  -

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